Walt Disney Company (The) — Earnings Quality Grade F
DIS · Communication Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 40 days, change -1 days YoY
AR growth 0.9% vs revenue growth 3.4%
Revenue 3.4%, CFFO 29.6%. Cash follows revenue
Expense Quality
Inventory 5.5% vs COGS 0.1%. Normal
CapEx growth 48.3% is >2x revenue growth 3.4%
SG&A/Gross Profit = 46.3%. Normal
Gross margin 37.8%, change +2.0pp. Stable
Cash Flow Quality
CFFO/NI = 1.46. Profits backed by cash
FCF $10.1B, FCF/NI = 0.81
Accruals ratio = -2.9%. Low accruals
Cash $5.7B covers only 13% of debt $44.9B
Balance Sheet Health
Goodwill+Intangibles $82.6B = 75% of equity. Over 50%
Debt/EBITDA = 2.3x. Healthy
Other assets -23.7% vs revenue 3.4%. Normal
Write-offs up 302% YoY
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -2% YoY. Normal
Manipulation Score
M-Score = -2.62 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08