Aureus
FRed Flag

Walt Disney Company (The)(DIS)

F

Financial data as of Sep 30, 2025Declining · Communication Services

FCF Margin10.7%Free Cash Flow / Revenue
Cash Conversion145.9%Operating CF / Net Income
Free Cash Flow$10.1B
Revenue$94.4B
Net Cash-$39.2BNet debt position
Debt / FCF4.5xElevated debt burden
Current Ratio0.71Tight short-term liquidity
YoY FCF Growth-408.3%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-1Current ratio below 1.0 (0.71)
→
-1Significant YoY FCF decline (-408.3%)
→
-0.5Highly volatile FCF (consistency: 1.51)
→
FinalF

Analysis Summary

Strengths

  • Healthy FCF margin (10.7%)
  • Excellent cash conversion (146%)

Concerns

  • Net debt position ($39.2B)
  • Current ratio below 1.0 — tight short-term liquidity
  • Significant YoY FCF decline (-408.3%)
  • Highly volatile quarterly FCF
  • Significant FCF decline (-408.3% YoY)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin10.7%
Net Margin13.1%
Operating CF Margin19.2%
CapEx Ratio8.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$39.2BNet debt position
Debt / FCF4.5xElevated debt burden
Current Ratio0.71Tight liquidity
Debt / Equity0.41Low leverage

Quarterly FCF Trend

-408.3% YoYDeclining (-408.3%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameWalt Disney Company (The)
SectorCommunication Services
Free Cash Flow$10.1B
Revenue$94.4B
Net Income$12.4B
Operating Cash Flow$18.1B
Capital Expenditure$8.0B
FCF Margin10.7%
Cash Conversion Rate145.9%
Net Margin13.1%
Total Debt$44.9B
Total Cash$5.7B
Net Cash-$39.2B
Current Ratio0.71
Debt / Equity0.41
Debt / FCF4.5x
YoY FCF Growth-408.3%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateSep 30, 2025
GradeF
Data SourceYahoo Finance

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