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The Walt Disney Co Altman Z-Score

: 2.35 (As of Today)
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Warning Sign:

Altman Z-score of 2.35 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

The Walt Disney Co has a Altman Z-Score of 2.35, 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 face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for The Walt Disney Co's Altman Z-Score or its related term are showing as below:

NYSE:DIS' s Altman Z-Score Range Over the Past 10 Years
Min: 1.68   Med: 3.07   Max: 5.02
Current: 2.35

1.68
5.02

During the past 13 years, The Walt Disney Co's highest Altman Z-Score was 5.02. The lowest was 1.68. And the median was 3.07.


The Walt Disney Co Altman Z-Score Historical Data

The historical data trend for The Walt Disney Co's Altman Z-Score 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 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.15 3.83 4.58 2.29 1.83

The Walt Disney Co Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Altman Z-Score 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 1.70 1.83 2.29 2.35 2.38

Competitive Comparison

For the Entertainment subindustry, The Walt Disney Co's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

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

* The bar in red indicates where The Walt Disney Co's Altman Z-Score falls into.



The Walt Disney Co Altman Z-Score Calculation

Altman 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 Walt Disney Co's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0324+1.4*0.1993+3.3*0.0167+0.6*2.771+1.0*0.3145
=2.35

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2021:
Total Assets was $202,221 Mil.
Total Current Assets was $33,966 Mil.
Total Current Liabilities was $27,413 Mil.
Retained Earnings was $40,311 Mil.
Pre-Tax Income was 995 + 1230 + 46 + -580 = $1,691 Mil.
Interest Expense was -413 + -415 + -404 + -464 = $-1,696 Mil.
Revenue was 17022 + 15613 + 16249 + 14707 = $63,591 Mil.
Market Cap (Today) was $307,858 Mil.
Total Liabilities was $111,099 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(33966 - 27413)/202221
=0.0324

X2=Retained Earnings/Total Assets
=40311/202221
=0.1993

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1691 - -1696)/202221
=0.0167

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=307857.588/111099
=2.771

X5=Revenue/Total Assets
=63591/202221
=0.3145

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

The Walt Disney Co has a Altman Z-Score of 2.35 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


The Walt Disney Co  (NYSE:DIS) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


The Walt Disney Co Altman Z-Score Related Terms

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


The Walt Disney Co Business Description

The Walt Disney Co logo
Industry
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
Woodford Brent officer: EVP, Control, Fin Plan & Tax 1441 GARDINER LANE LOUISVILLE KY 40213
Desouza Francis A director 350 ELLIS STREET MOUNTAIN VIEW CA 94043
Rice Derica W director LILLY CORPORATE CENTER INDIANAPOLIS IN 46285
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 PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: PARKER MARK G a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
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
Chapek Robert A officer: Chief Executive Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Braverman Alan N officer: Sr EVP, General Counsel & Secy 500 SOUTH BUENA VISTA ST BURBANK CA 91521-1030
Iger Robert A director, officer: Chairman and CEO C/O WALT DISNEY CO 500 S BUENA VISTA STREET BURBANK CA 91521-1062
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
Mucha Zenia B. officer: SEVP & Chief Comms Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521

The Walt Disney Co Headlines

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