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The Walt Disney Co (NYSE:DIS) Interest Coverage

: 1.25 (As of Sep. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. The Walt Disney Co's Operating Income for the three months ended in Sep. 2022 was $542 Mil. The Walt Disney Co's Interest Expense for the three months ended in Sep. 2022 was $-434 Mil. The Walt Disney Co's interest coverage for the quarter that ended in Sep. 2022 was 1.25. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for The Walt Disney Co's Interest Coverage or its related term are showing as below:

DIS' s Interest Coverage Range Over the Past 10 Years
Min: 2.37   Med: 26.47   Max: 49.9
Current: 4.37


DIS's Interest Coverage is ranked worse than
74.72% of 629 companies
in the Media - Diversified industry
Industry Median: 18.65 vs DIS: 4.37

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


The Walt Disney Co (NYSE:DIS) Interest Coverage Historical Data

The historical data trend for The Walt Disney Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Walt Disney Co Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.85 12.10 2.54 2.37 4.37

The Walt Disney Co Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.85 6.08 4.28 6.40 1.25

The Walt Disney Co (NYSE:DIS) Interest Coverage Competitive Comparison

For the Entertainment subindustry, The Walt Disney Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

The Walt Disney Co (NYSE:DIS) Interest Coverage Distribution

For the Media - Diversified industry and Communication Services sector, The Walt Disney Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Walt Disney Co's Interest Coverage falls into.



The Walt Disney Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Walt Disney Co's Interest Coverage for the fiscal year that ended in Sep. 2022 is calculated as

Here, for the fiscal year that ended in Sep. 2022, The Walt Disney Co's Interest Expense was $-1,549 Mil. Its Operating Income was $6,770 Mil. And its Long-Term Debt & Capital Lease Obligation was $48,538 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2022 )/Interest Expense (A: Sep. 2022 )
=-1*6770/-1549
=4.37

The Walt Disney Co's Interest Coverage for the quarter that ended in Sep. 2022 is calculated as

Here, for the three months ended in Sep. 2022, The Walt Disney Co's Interest Expense was $-434 Mil. Its Operating Income was $542 Mil. And its Long-Term Debt & Capital Lease Obligation was $48,538 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2022 )/Interest Expense (Q: Sep. 2022 )
=-1*542/-434
=1.25

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


The Walt Disney Co  (NYSE:DIS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


The Walt Disney Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of The Walt Disney Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


The Walt Disney Co (NYSE:DIS) Business Description

The Walt Disney Co logo
Address
500 South Buena Vista Street, Burbank, CA, USA, 91521
Walt Disney owns the rights to some of the most globally recognized characters, from Mickey Mouse to Luke Skywalker. These characters and others are featured in several Disney theme parks around the world. Disney makes live-action and animated films under studios such as Pixar, Marvel, and Lucasfilm and also operates media networks including ESPN and several TV production studios. Disney recently reorganized into four segments with one new segment: direct-to-consumer and international. The new segment includes the two announced OTT offerings, ESPN+ and the Disney SVOD service. The plan also combines two segments, parks and resorts and consumer products, into one. The media networks group contains the U.S. cable channels and ABC. The studio segment holds the movie production assets.
Executives
Gutierrez Horacio E officer: Sr EVP, General Counsel & Secy 500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Morrell Geoff officer: SEVP Chf Corp Affairs Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Richardson Paul J officer: Sr. EVP and Chief HR Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Chang Amy director 2100 SEAPORT BLVD. C/O INFORMATICA CORPORATION REDWOOD CITY CA 94063
Mcdonald Calvin director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Chapek Robert A officer: Chief Executive Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Catz Safra director C/O DELPHI ASSET MGMT CORPORATION 5525 KIETZKE LANE, SUITE 200 RENO NV 89511
Arnold Susan E director THE PROCTER & GAMBLE COMPANY 1 PROCTER & GAMBLE PLAZA CINCINNATI OH 45202
Lagomasino Maria Elena director 345 PARK AVENUE 5TH FL NEW YORK NY 10154
Parker Mark G director ONE BOWERMAN DR BEAVERTON OR 97005
Barra Mary T director 300 RENAISSANCE CENTER M/C: 482-C25-A36 DETROIT MI 48265-3000
Froman Michael B. G. director 2000 PURCHASE STREET PURCHASE NY 10577
Braverman Alan N officer: Sr EVP, General Counsel & Secy 500 SOUTH BUENA VISTA ST BURBANK CA 91521-1030
Mccarthy Christine M officer: SEVP-Chief Financial Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521-0964
Parker Mary Jayne officer: SEVP and Chief HR Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521-0966

The Walt Disney Co (NYSE:DIS) Headlines

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