>>55432283Its not quite true, the issue is that Disney have doubled their debt in roughly the last four years, going from a debt/equity ratio of 0.22 to 0.44, mostly because they took out a massive loan at the start of the pandemic. At its worst it was 0.64, that has since come down. At the moment they have capital, but not enough to cover all their debt.
This wouldn't be a problem if they could outgrow it (which EBIT ratings would suggest they could), but how will they accomplish this? Marvel movies? Live action flops? Declining park visits?
Over the last five years Disney's earnings have been declining at an average annual rate of -35%, despite the entertainment industry earnings average growing at 10.5% annually. It's not necessarily fatal, but the trend needs to reverse soon.
