Cash Flow Statement
The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.
The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.
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- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2008
- Return on Equity (ROE) since 2008
- Return on Assets (ROA) since 2008
- Price to Earnings (P/E) since 2008
- Price to Operating Profit (P/OP) since 2008
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Warner Bros. Discovery Inc., consolidated cash flow statement
US$ in millions
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).
- Net Income (Loss)
- The company’s net income displayed significant volatility over the reviewed periods. Starting with a loss of $313 million in 2017, net income surged to $681 million in 2018 and peaked at $2.213 billion in 2019. Subsequently, net income declined to $1.355 billion in 2020 and further decreased to $1.197 billion in 2021, indicating a downward trend after a strong 2019 performance.
- Content Rights Amortization and Impairment
- This expense increased substantially from $1.91 billion in 2017 to $3.288 billion in 2018, followed by a slight decrease to $2.853 billion in 2019. The figure remained relatively stable around $2.95 billion in 2020 before rising again to $3.501 billion in 2021, reflecting ongoing high content-related amortization and impairment costs.
- Depreciation and Amortization
- Depreciation and amortization expenses experienced a sharp increase from $330 million in 2017 to approximately $1.4 billion in 2018, then stayed relatively consistent around $1.35 to $1.58 billion through 2019 to 2021, indicating stable non-content amortization expenses post-2018.
- Deferred Income Taxes
- This item showed negative values throughout, with fluctuations between -$131 million and -$511 million, without a clear trend. The most notable value occurred in 2021 with -$511 million, indicating higher deferred tax liabilities or reductions in deferred tax assets.
- Equity in Losses of Equity Method Investee Companies and Cash Distributions
- Losses decreased sharply from $223 million in 2017 to $62 million in 2019, then slightly increased to $167 million in 2020 before dropping again to $63 million in 2021. This suggests varying but generally declining losses from equity affiliates over time.
- Loss on Extinguishment of Debt
- This loss showed sporadic values with no consistent trend, peaking at $76 million in 2020 and decreasing to $10 million in 2021.
- Share-based Compensation Expense
- Share-based compensation expense grew steadily each year, starting at $39 million in 2017 and increasing to $178 million by 2021, indicating rising costs related to employee equity compensation programs.
- Impairment of Goodwill and Other Intangible Assets
- Impairments were significant in 2017 at $1.327 billion, with smaller amounts in later years ($155 million in 2019 and $124 million in 2020). No impairments were recorded in 2018 or 2021, suggesting large one-time charges initially with reduced impairment needs subsequently.
- Gain on Sale of Investments
- Negative gains (losses) on sale of investments were recorded primarily in 2020 (-$103 million) and 2021 (-$19 million), following a lack of gains or losses in earlier years. This indicates unfavorable investment disposals in recent years.
- (Gain) Loss on Disposition
- Significant negative (gain) amounts were recorded in 2018 (-$84 million) and 2021 (-$71 million), with minor positive amounts in other years, pointing to occasional profitable dispositions.
- Other, Net
- This line item was variable, with values ranging from -$22 million in 2020 to $149 million in 2017, but no clear trend emerges.
- Changes in Operating Assets and Liabilities, Net of Acquisitions and Dispositions
- These changes consistently showed large negative cash impacts from operating assets and liabilities, increasing from -$1.895 billion in 2017 to -$3.237 billion in 2021, pointing to growing working capital needs or less cash flow absorbed from operating adjustments over time.
- Adjustments to Reconcile Net Income to Cash Provided by Operating Activities
- These adjustments remained positive across all years, ranging from $1.186 billion to $1.942 billion, indicating consistent non-cash charges or other adjustments that increase cash flow beyond net income.
- Cash Provided by Operating Activities
- Operating cash flows generally increased from $1.629 billion in 2017 to a peak of $3.399 billion in 2019, followed by a decline but stabilization above $2.7 billion in 2020 and 2021, demonstrating strong operational cash generation despite fluctuations in net income.
- Purchases of Property and Equipment
- Capital expenditures increased steadily from $135 million in 2017 to $402 million in 2020, then slightly declined to $373 million in 2021, indicating sustained investment in fixed assets.
- Purchases of Investments
- There were no purchases of investments reported until 2020 ($250 million) and 2021 ($103 million), marking new or increased investment activities in these years.
- Investments in and Advances to Equity Investments
- Investments declined notably from -$444 million in 2017 to approximately -$180 million in 2020 and 2021, reflecting a tapering but ongoing commitment to equity interests.
- Proceeds from Sales and Maturities of Investments and Dissolution of Joint Venture
- Proceeds were minimal or absent before 2019, then increased substantially to $599 million in 2021, suggesting divestitures or maturity of investments contributing to cash inflows.
- Business Acquisitions, Net of Cash Acquired
- Acquisitions showed a large outflow in 2018 (-$8.565 billion), followed by smaller amounts in other years, indicating a major acquisition effort in 2018 and more modest activity subsequently.
- Cash Used in Investing Activities
- Investing cash flows were strongly negative in 2018 at -$8.593 billion due to acquisitions. Other years showed modest negative cash usage, decreasing to -$56 million in 2021, indicating reduced investing outflows or increased divestitures.
- Principal Repayments of Debt
- Debt repayments were variable but substantial in 2019 and 2020 (around -$2.6 billion and -$2.2 billion respectively), then decreased to -$574 million in 2021, reflecting active debt management with intensified repayment in the middle years.
- Borrowings from Debt, Net of Discount and Issuance Costs
- Borrowings spiked in 2017 ($7.488 billion) and remained active in 2019 and 2020, signaling increased indebtedness or refinancing during these periods, with no amount reported in 2021.
- Repurchases of Stock
- Stock repurchase activity was significant in 2017, 2019, and 2020 (around -$600 million to -$969 million), with no repurchases noted in 2018 or 2021, indicating intermittent buyback programs.
- Cash Used in Financing Activities
- Financing cash flow was strongly positive in 2017 ($5.951 billion), negative in 2018 (-$283 million), and further negative in 2019 and 2020 (-$2.357 billion and -$1.549 billion, respectively), moving to a smaller negative outflow in 2021 (-$853 million), demonstrating shifting financing strategies over time.
- Effect of Exchange Rate Changes on Cash
- The effect of foreign exchange fluctuations on cash was variable, both positive and negative, with no sustained trend, reflecting currency impacts on cash balances.
- Net Change in Cash, Cash Equivalents, and Restricted Cash
- Cash balances saw a dramatic increase in 2017 ($7.009 billion increase), followed by a sharp decrease in 2018 (-$6.323 billion). Modest increases were recorded for 2019 to 2021, ending with a $1.783 billion increase in 2021, showing recovery and growth in liquidity after prior volatility.
- Cash, Cash Equivalents, and Restricted Cash, End of Period
- Ending cash balances experienced significant fluctuations, starting from $300 million in 2017, peaking at $7.309 billion at the end of 2017, then declining to $986 million in 2018 before steadily increasing to $3.905 billion by the end of 2021, indicating improved cash position and liquidity over time.