Using the debt ratios provided, put down few bullet points analyzing the relative creditworthiness of Disney and its peers

 

Among Disney and its peers:

• Disney is in a fairly better position than its peers because the company is having the least leverage, and also the highest coverage ratio among the all, which means that the company is very capable to pay off its debt obligation each year.
• Among all the companies whose data is given, it seems that the companies are fairly positioned, expect some which have very high Debt/Assets ratio, but all companies are credit worthy because the companies are having good coverage ratio and also good debt/EBITDA, which indicates that the companies are taking high leverage for expanding, but at the same time are able to generate enough EBIT to be in a fair position and give indication to the creditors about the good creditworthiness which they posses.
• A coverage ratio of "2" is considered in the industry and looking at the data given only two companies which are Charter and Lions Gate have a coverage ratio of less than 2, which puts them in a bad territory, apart from these two all the companies are creditworthy.
• A good debt/EBITDA ratio is when the company has a ratio of less than 4, and when we look at Disney and its peers, most of the companies are in the good territory, expect some which have a debt/EBITDA ratio of more than 5, which are considered less creditworthy in the industry by the creditors/lenders.