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 Investments

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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Warner Bros. Discovery Inc., adjustment to net income (loss) available to Discovery, Inc.

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income (loss) available to Discovery, Inc. (as reported) 1,006 1,219 2,069 594 (337)
Add: Available-for-sale securities — — — — 15
Net income (loss) available to Discovery, Inc. (adjusted) 1,006 1,219 2,069 594 (322)

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Warner Bros. Discovery Inc., adjusted profitability 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% 11.42% 18.57% 5.63% -4.68%
Return on Equity (ROE)
Reported ROE 8.67% 11.65% 20.92% 7.08% -7.31%
Adjusted ROE 8.67% 11.65% 20.92% 7.08% -6.98%
Return on Assets (ROA)
Reported ROA 2.92% 3.58% 6.13% 1.82% -1.49%
Adjusted ROA 2.92% 3.58% 6.13% 1.82% -1.43%

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).

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 ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Warner Bros. Discovery Inc. adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Warner Bros. Discovery Inc. adjusted ROA deteriorated from 2019 to 2020 and from 2020 to 2021.

Warner Bros. Discovery Inc., Profitability 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) available to Discovery, Inc. 1,006 1,219 2,069 594 (322)
Revenues 12,191 10,671 11,144 10,553 6,873
Profitability Ratio
Adjusted net profit margin2 8.25% 11.42% 18.57% 5.63% -4.68%

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 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) available to Discovery, Inc. 1,006 1,219 2,069 594 (322)
Total Discovery, Inc. stockholders’ equity 11,599 10,464 9,891 8,386 4,610
Profitability Ratio
Adjusted ROE2 8.67% 11.65% 20.92% 7.08% -6.98%

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. ÷ Total Discovery, Inc. stockholders’ equity
= 100 × 1,006 ÷ 11,599 = 8.67%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Warner Bros. Discovery Inc. adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.

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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) available to Discovery, Inc. 1,006 1,219 2,069 594 (322)
Total assets 34,427 34,087 33,735 32,550 22,555
Profitability Ratio
Adjusted ROA2 2.92% 3.58% 6.13% 1.82% -1.43%

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. ÷ Total assets
= 100 × 1,006 ÷ 34,427 = 2.92%

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