Warner Bros. Discovery Inc. (NASDAQ:WBD)

The financial data reveals the evolution of current assets and adjusted current assets over a five-year period ending December 31, 2021. Both metrics exhibit a downward trend initially, followed by consistent recovery and growth towards the end of the timeframe.

Current Assets

The value of current assets decreased sharply from 9,991 million USD in 2017 to 4,231 million USD in 2018, representing a significant contraction. Subsequently, there was a gradual recovery observed over the next three years: rising to 5,217 million USD in 2019, increasing further to 6,130 million USD in 2020, and reaching 7,264 million USD in 2021. This pattern indicates a recovery trajectory following the initial sharp decline with a Compound Annual Growth Rate (CAGR) from 2018 to 2021 suggesting steady asset base expansion.

Adjusted Current Assets

Adjusted current assets follow a similar trend but with slightly higher values in each corresponding year. After a decrease from 10,046 million USD in 2017 to 4,277 million USD in 2018, the adjusted assets increased progressively to 5,271 million USD in 2019, 6,189 million USD in 2020, and 7,318 million USD in 2021. The consistent difference between adjusted and standard current assets suggests recurring adjustments remain stable over time.

Overall, these trends imply that while the company faced a significant decline around 2018, possibly due to operational challenges or market conditions, the asset base has been on a robust recovery path since then. The parallel movement of adjusted and unadjusted figures conveys consistency in accounting practices or asset valuation adjustments. This recovery may reflect improved liquidity, better asset management, or strategic initiatives to strengthen the current asset position over the period analyzed.

Total Assets

The total assets demonstrated a consistent upward trend over the five-year period. Starting at approximately $22.6 billion at the end of 2017, the total assets increased sharply by nearly 44% to about $32.6 billion at the end of 2018. Following this substantial increase, the growth rate moderated, with total assets rising more gradually to approximately $33.7 billion in 2019, $34.1 billion in 2020, and reaching roughly $34.4 billion in 2021. This indicates a phase of rapid expansion initially, followed by relative stabilization in asset growth.

Adjusted Total Assets

The pattern for adjusted total assets closely mirrors that of total assets across the same timeframe. Adjusted total assets started at $22.8 billion in 2017, increased significantly to around $33.3 billion in 2018, and then showed a slower rate of increase for the subsequent years, reaching roughly $33.3 billion in 2019, $33.5 billion in 2020, and about $33.7 billion in 2021. The adjusted figures maintained a lower growth trajectory after the initial large increase but remained consistently high, reflecting adjustments that do not materially alter the overall asset trend.

Current Liabilities

The current liabilities increased significantly from 1,871 million USD at the end of 2017 to 3,997 million USD at the end of 2018. After this sharp rise, there was a decline to 3,239 million USD in 2019, followed by a further decrease to 3,082 million USD in 2020. However, in 2021, current liabilities increased again to 3,459 million USD. Overall, the current liabilities have shown significant volatility over the five-year period but remain substantially higher in 2021 compared to 2017.

Adjusted Current Liabilities

The adjusted current liabilities followed a similar pattern to the current liabilities but with lower values. They rose sharply from 1,616 million USD in 2017 to 3,748 million USD in 2018, then decreased to 2,750 million USD in 2019 and further to 2,525 million USD in 2020. A rebound occurred in 2021, with adjusted current liabilities increasing to 2,981 million USD. This indicates that after adjustment, the liabilities show a pattern of initial sharp increase, followed by a decline, and a moderate increase again toward the end of the period.

The financial data reveals changes in liabilities over the five-year period ending December 31, 2021. Both total liabilities and adjusted total liabilities exhibit specific trends worth noting.

Total Liabilities

Total liabilities increased from US$17,532 million in 2017 to a peak of US$22,033 million in 2018, indicating a significant rise in the company’s overall obligations during that year. After 2018, total liabilities show a slight decrease and stabilization, remaining relatively flat around US$21,700 million in 2019 and 2020 and then declining further to US$21,031 million by 2021. This suggests a strategic effort to reduce or manage liabilities after the sharp increase observed in 2018.

Adjusted Total Liabilities

Adjusted total liabilities trend similarly but consistently at lower values than total liabilities. Starting at US$17,011 million in 2017, adjusted liabilities rose to US$20,481 million in 2018, aligning with the overall increase seen in total liabilities. From 2018 onwards, adjusted total liabilities demonstrate a steady decrease each year, moving from US$20,481 million in 2018 to US$19,214 million in 2021. The decrease is more pronounced and consistent than in total liabilities, suggesting adjustments may exclude certain items that have been reduced more aggressively.

Overall, the data suggests that the company experienced a notable increase in liabilities between 2017 and 2018, followed by a period of liability management and reduction through 2021. The adjustments made to total liabilities indicate a more conservative or refined view of the company’s indebtedness, which has declined steadily after peaking in 2018. This pattern may reflect strategic financial management aimed at improving balance sheet strength over the analyzed period.

The financial data reveals a consistent upward trend in both total stockholders’ equity and adjusted total equity over the five-year period examined.

Total Discovery, Inc. stockholders’ equity

Stockholders’ equity increased steadily each year from 2017 to 2021. Starting at US$4,610 million in 2017, there was a marked rise to US$8,386 million in 2018, followed by continual growth reaching US$11,599 million by the end of 2021. This progression indicates a strengthening equity base, reflecting accumulation of retained earnings or equity issuances over time.

Adjusted total equity

The adjusted total equity shows a similar upward trajectory, with values beginning at US$5,740 million in 2017 and expanding significantly to US$14,512 million by 2021. Notably, there is a substantial increase between 2017 and 2018, from US$5,740 million to US$12,770 million, suggesting reassessments, adjustments, or additional equity factors accounted for beyond the basic stockholders’ equity figure. Growth continued steadily through 2021, albeit at a more moderate pace compared to the initial jump.

The financial data indicates several notable trends in Warner Bros. Discovery Inc.'s capital structure and equity over the five-year period ending December 31, 2021.

Total reported debt

The total reported debt experienced an initial increase from 14,785 million US dollars in 2017 to a peak of 17,045 million in 2018, followed by a generally declining trend through 2021, reaching 15,014 million. This suggests a reduction in debt levels after 2018, albeit with some fluctuations.

Total Discovery, Inc. stockholders’ equity

Stockholders' equity showed consistent growth each year, rising from 4,610 million US dollars in 2017 to 11,599 million in 2021. This represents a strong increase in equity, more than doubling over the period, signaling accumulation of retained earnings or infusion of capital.

Total reported capital

Total reported capital increased steadily from 19,395 million in 2017 to 26,613 million in 2021. The steady rise reflects the combined effects of growing equity and fluctuations in debt, indicating a strengthening capital base over time.

Adjusted total debt

Adjusted total debt figures closely mirror the reported debt pattern, rising to 17,781 million in 2018 before gradually declining to 15,643 million by 2021. The adjustment does not significantly alter the observed debt trend but indicates slightly higher amounts compared to reported figures.

Adjusted total equity

Adjusted total equity shows significant growth from 5,740 million in 2017 to 14,512 million in 2021, increasing steadily each year. This growth trend parallels the reported equity figures but reflects higher adjusted values, possibly accounting for other comprehensive income or valuation adjustments.

Adjusted total capital

Adjusted total capital increased sharply from 20,730 million in 2017 to a peak of 30,551 million in 2018, then remained relatively stable through 2021, ending at 30,155 million. After the sharp increase to 2018, adjusted capital fluctuated slightly but showed no significant upward or downward trend.

In summary, the entity's equity base strengthened consistently over the period, more than doubling. Adjusted figures for equity and capital suggest a more robust financial position than reported amounts alone. Debt levels peaked in 2018 and subsequently declined, contributing to a more balanced capital structure by 2021. Total capital, both reported and adjusted, displays upward movement especially between 2017 and 2018, after which it stabilizes. These trends reflect ongoing efforts to manage leverage while expanding equity resources.

The financial data reveals a consistent growth trend in revenues over the five-year period analyzed. Revenues increased significantly from 6,873 million US dollars in 2017 to 12,191 million US dollars in 2021. This represents a near doubling of revenue within this time frame.

Examining the adjusted revenues, which may account for specific one-time items or other adjustments, a similar upward trajectory is observed. Adjusted revenues rose from 6,952 million US dollars in 2017 to 12,115 million US dollars in 2021. The slight differences between reported and adjusted revenues suggest minimal adjustments in the financial reporting.

2017 to 2018

There is a marked increase in revenues from 6,873 million to 10,553 million US dollars, indicating substantial growth within a single year. Adjusted revenues mirrored this increase closely, rising from 6,952 million to 10,558 million.

2018 to 2019

Revenues continued to increase but at a slower pace, reaching 11,144 million US dollars. Adjusted revenues showed similar growth, increasing to 11,372 million.

2019 to 2020

A slight decline in revenues occurred, falling to 10,671 million US dollars in 2020. This dip is also reflected in adjusted revenues which decreased to 10,723 million, possibly reflecting adverse external conditions impacting financial performance.

2020 to 2021

The trend reversed in 2021, with revenues rebounding to 12,191 million and adjusted revenues increasing to 12,115 million US dollars. This recovery suggests resumed growth momentum post the decline experienced in 2020.

Overall, the data presents a positive growth trajectory in revenues over the five years, with a temporary setback in 2020. The parallel movement of reported and adjusted revenues indicates consistency in the financial adjustments applied across the period.

The analysis of the annual financial data reveals notable fluctuations and trends in the net income figures over the five-year span.

Net Income (Loss) Available to Discovery, Inc.

The net income displayed a significant improvement from a loss of $337 million in 2017 to a positive $594 million in 2018. This positive trend continued in 2019 with a peak net income of $2,069 million. However, the profitability decreased in the subsequent years, with net income declining to $1,219 million in 2020 and further to $1,006 million in 2021. Despite this decrease, the net income remained positive and substantially higher than the initial period in 2017.

Adjusted Net Income (Loss)

Adjusted net income followed a somewhat similar trajectory. Starting from a loss of $242 million in 2017, it turned positive to $437 million in 2018. It continued increasing substantially to $1,848 million in 2019. In 2020, adjusted net income slightly decreased to $1,437 million, followed by a more marked decline to $387 million in 2021. This variability suggests that while underlying business operations showed growth post-2017, the adjusted profitability experienced a sharper reduction by the end of the period compared to the reported net income.