Stock Analysis on Net
Stock Analysis on Net

Warner Bros. Discovery Inc. (NASDAQ:WBD)

This company has been moved to the archive! The financial data has not been updated since November 4, 2022.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Warner Bros. Discovery Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Goodwill 12,912 13,070 13,050 13,006 7,073
Trademarks 1,716 1,751 1,708 1,669 494
Customer relationships 9,433 9,551 9,446 9,455 2,026
Other 395 421 400 314 118
Intangible assets subject to amortization, gross 11,544 11,723 11,554 11,438 2,638
Accumulated amortization (5,388) (4,244) (3,051) (1,928) (1,032)
Intangible assets subject to amortization, net 6,156 7,479 8,503 9,510 1,606
Trademarks 161 161 164 164 164
Indefinite-lived intangible assets not subject to amortization 161 161 164 164 164
Intangible assets 6,317 7,640 8,667 9,674 1,770
Goodwill and intangible assets 19,229 20,710 21,717 22,680 8,843

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Warner Bros. Discovery Inc. goodwill increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Warner Bros. Discovery Inc. intangible assets decreased from 2019 to 2020 and from 2020 to 2021.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Warner Bros. Discovery Inc. goodwill and intangible assets decreased from 2019 to 2020 and from 2020 to 2021.

Adjustments to Financial Statements: Removal of Goodwill

Warner Bros. Discovery Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 34,427 34,087 33,735 32,550 22,555
Less: Goodwill 12,912 13,070 13,050 13,006 7,073
Total assets (adjusted) 21,515 21,017 20,685 19,544 15,482
Adjustment to Total Discovery, Inc. Stockholders’ Equity
Total Discovery, Inc. stockholders’ equity (as reported) 11,599 10,464 9,891 8,386 4,610
Less: Goodwill 12,912 13,070 13,050 13,006 7,073
Total Discovery, Inc. stockholders’ equity (adjusted) (1,313) (2,606) (3,159) (4,620) (2,463)
Adjustment to Net Income (loss) Available To Discovery, Inc.
Net income (loss) available to Discovery, Inc. (as reported) 1,006 1,219 2,069 594 (337)
Add: Impairment of goodwill — 121 155 — 1,327
Net income (loss) available to Discovery, Inc. (adjusted) 1,006 1,340 2,224 594 990

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Warner Bros. Discovery Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Warner Bros. Discovery Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 8.25% 11.42% 18.57% 5.63% -4.90%
Adjusted net profit margin 8.25% 12.56% 19.96% 5.63% 14.40%
Total Asset Turnover
Reported total asset turnover 0.35 0.31 0.33 0.32 0.30
Adjusted total asset turnover 0.57 0.51 0.54 0.54 0.44
Financial Leverage
Reported financial leverage 2.97 3.26 3.41 3.88 4.89
Adjusted financial leverage — — — — —
Return on Equity (ROE)
Reported ROE 8.67% 11.65% 20.92% 7.08% -7.31%
Adjusted ROE — — — — —
Return on Assets (ROA)
Reported ROA 2.92% 3.58% 6.13% 1.82% -1.49%
Adjusted ROA 4.68% 6.38% 10.75% 3.04% 6.39%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Warner Bros. Discovery Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Warner Bros. Discovery Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Warner Bros. Discovery Inc. adjusted ROA deteriorated from 2019 to 2020 and from 2020 to 2021.

Warner Bros. Discovery Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) available to Discovery, Inc. 1,006 1,219 2,069 594 (337)
Revenues 12,191 10,671 11,144 10,553 6,873
Profitability Ratio
Net profit margin1 8.25% 11.42% 18.57% 5.63% -4.90%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) available to Discovery, Inc. 1,006 1,340 2,224 594 990
Revenues 12,191 10,671 11,144 10,553 6,873
Profitability Ratio
Adjusted net profit margin2 8.25% 12.56% 19.96% 5.63% 14.40%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Net profit margin = 100 × Net income (loss) available to Discovery, Inc. ÷ Revenues
= 100 × 1,006 ÷ 12,191 = 8.25%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) available to Discovery, Inc. ÷ Revenues
= 100 × 1,006 ÷ 12,191 = 8.25%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Warner Bros. Discovery Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Revenues 12,191 10,671 11,144 10,553 6,873
Total assets 34,427 34,087 33,735 32,550 22,555
Activity Ratio
Total asset turnover1 0.35 0.31 0.33 0.32 0.30
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues 12,191 10,671 11,144 10,553 6,873
Adjusted total assets 21,515 21,017 20,685 19,544 15,482
Activity Ratio
Adjusted total asset turnover2 0.57 0.51 0.54 0.54 0.44

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 12,191 ÷ 34,427 = 0.35

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 12,191 ÷ 21,515 = 0.57

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Warner Bros. Discovery Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets 34,427 34,087 33,735 32,550 22,555
Total Discovery, Inc. stockholders’ equity 11,599 10,464 9,891 8,386 4,610
Solvency Ratio
Financial leverage1 2.97 3.26 3.41 3.88 4.89
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 21,515 21,017 20,685 19,544 15,482
Adjusted total Discovery, Inc. stockholders’ equity (1,313) (2,606) (3,159) (4,620) (2,463)
Solvency Ratio
Adjusted financial leverage2 — — — — —

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Financial leverage = Total assets ÷ Total Discovery, Inc. stockholders’ equity
= 34,427 ÷ 11,599 = 2.97

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Discovery, Inc. stockholders’ equity
= 21,515 ÷ -1,313 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) available to Discovery, Inc. 1,006 1,219 2,069 594 (337)
Total Discovery, Inc. stockholders’ equity 11,599 10,464 9,891 8,386 4,610
Profitability Ratio
ROE1 8.67% 11.65% 20.92% 7.08% -7.31%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) available to Discovery, Inc. 1,006 1,340 2,224 594 990
Adjusted total Discovery, Inc. stockholders’ equity (1,313) (2,606) (3,159) (4,620) (2,463)
Profitability Ratio
Adjusted ROE2 — — — — —

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROE = 100 × Net income (loss) available to Discovery, Inc. ÷ Total Discovery, Inc. stockholders’ equity
= 100 × 1,006 ÷ 11,599 = 8.67%

2 Adjusted ROE = 100 × Adjusted net income (loss) available to Discovery, Inc. ÷ Adjusted total Discovery, Inc. stockholders’ equity
= 100 × 1,006 ÷ -1,313 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) available to Discovery, Inc. 1,006 1,219 2,069 594 (337)
Total assets 34,427 34,087 33,735 32,550 22,555
Profitability Ratio
ROA1 2.92% 3.58% 6.13% 1.82% -1.49%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) available to Discovery, Inc. 1,006 1,340 2,224 594 990
Adjusted total assets 21,515 21,017 20,685 19,544 15,482
Profitability Ratio
Adjusted ROA2 4.68% 6.38% 10.75% 3.04% 6.39%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROA = 100 × Net income (loss) available to Discovery, Inc. ÷ Total assets
= 100 × 1,006 ÷ 34,427 = 2.92%

2 Adjusted ROA = 100 × Adjusted net income (loss) available to Discovery, Inc. ÷ Adjusted total assets
= 100 × 1,006 ÷ 21,515 = 4.68%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Warner Bros. Discovery Inc. adjusted ROA deteriorated from 2019 to 2020 and from 2020 to 2021.