The Walt Disney Co (BUE:DIS) Financial Strength

: 4 (As of Mar. 2023)

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The Walt Disney Co has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

The Walt Disney Co's Interest Coverage for the quarter that ended in Mar. 2023 was 4.51. The Walt Disney Co's debt to revenue ratio for the quarter that ended in Mar. 2023 was 0.56. As of today, The Walt Disney Co's Altman Z-Score is 1.89.

Competitive Comparison

For the Entertainment subindustry, The Walt Disney Co's Financial Strength, along with its competitors' market caps and Financial Strength 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.

Annual Data Quarterly Data

The Walt Disney Co Financial Strength Distribution

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

* The bar in red indicates where The Walt Disney Co's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

The Walt Disney Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

The Walt Disney Co's Interest Expense for the months ended in Mar. 2023 was ARS-99,565 Mil. Its Operating Income for the months ended in Mar. 2023 was ARS449,426 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was ARS8,902,789 Mil.

The Walt Disney Co's Interest Coverage for the quarter that ended in Mar. 2023 is

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	449426.26	/	-99565.202
	=	4.51

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

The Walt Disney Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(681942.616	+	8902788.507)	/	17238213.4
	=	0.56

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

The Walt Disney Co has a Z-score of 1.89, indicating it is in Grey Zones. This implies that The Walt Disney Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.89 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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 Walt Disney Co (BUE:DIS) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

The Walt Disney Co has the Financial Strength Rank of 4.

The Walt Disney Co Financial Strength Related Terms

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The Walt Disney Co (BUE:DIS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » The Walt Disney Co (BUE:DIS) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

DIS:USA DIS:Mexico 0QZO:UK WDP:Germany DIS:Chile DIS:Canada DISB34:Brazil DIS:Austria

Address

500 South Buena Vista Street, Burbank, CA, USA, 91521

Website

https://www.thewaltdisneycompany.com

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 shifted into a more streaming-focused firm by acquiring the remainder of Hulu and launching Disney+ and ESPN+. Across its streaming platforms, Disney had over 235 million subscribers as of September 2022, up sharply from under 64 million in December 2019.