Current Ratio
since 2008
Calculation
Warner Bros. Discovery Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 2.10 | = | 7,264) | ÷ | 3,459) |
| Dec 31, 2020 | 1.99 | = | 6,130) | ÷ | 3,082) |
| Dec 31, 2019 | 1.61 | = | 5,217) | ÷ | 3,239) |
| Dec 31, 2018 | 1.06 | = | 4,231) | ÷ | 3,997) |
| Dec 31, 2017 | 5.34 | = | 9,991) | ÷ | 1,871) |
| Dec 31, 2016 | 1.66 | = | 2,599) | ÷ | 1,561) |
| Dec 31, 2015 | 1.64 | = | 2,596) | ÷ | 1,579) |
| Dec 31, 2014 | 0.96 | = | 2,491) | ÷ | 2,604) |
| Dec 31, 2013 | 1.86 | = | 2,410) | ÷ | 1,294) |
| Dec 31, 2012 | 2.89 | = | 2,730) | ÷ | 946) |
| Dec 31, 2011 | 3.26 | = | 2,431) | ÷ | 746) |
| Dec 31, 2010 | 2.21 | = | 1,735) | ÷ | 785) |
| Dec 31, 2009 | 2.13 | = | 1,680) | ÷ | 790) |
| Dec 31, 2008 | 1.04 | = | 1,109) | ÷ | 1,070) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
1 US$ in millions
The analysis of liquidity metrics from 2008 to 2021 reveals a period of significant volatility in the current ratio, characterized by several cycles of expansion and contraction. While the ratio ended the period at a healthy 2.10, it experienced extreme fluctuations driven by both aggressive growth in current assets and periodic increases in short-term obligations.
- Liquidity Trends and Volatility
- The current ratio exhibited a general upward trajectory between 2008 and 2011, rising from 1.04 to a peak of 3.26. This improvement was driven by a simultaneous increase in current assets and a reduction in current liabilities. However, this trend reversed by 2014, when the ratio reached a period low of 0.96, representing the only instance in the analyzed timeframe where current liabilities exceeded current assets.
- Asset Surges and Peak Liquidity
- A significant spike occurred in 2017, where current assets increased to 9,991 million US$, resulting in a peak current ratio of 5.34. This represents the highest level of short-term liquidity in the observed period. The following year saw a sharp normalization of assets to 4,231 million US$, which caused the current ratio to compress to 1.06.
- Recent Stability and Recovery
- From 2018 to 2021, a consistent recovery in liquidity is observed. The current ratio climbed steadily from 1.06 in 2018 to 2.10 by the end of 2021. This stabilization is attributed to a gradual growth in current assets, which rose from 4,231 million US$ to 7,264 million US$, while current liabilities remained relatively stable, fluctuating between 3,082 million US$ and 3,997 million US$.
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Comparison to Competitors
Warner Bros. Discovery Inc., current ratio, long-term trends, comparison to competitors
| Warner Bros. Discovery Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2021 | 2.10 | 2.93 | 0.85 | 3.15 | 0.95 | 1.08 |
| Dec 31, 2020 | 1.99 | 3.07 | 0.93 | 5.05 | 1.25 | 1.32 |
| Dec 31, 2019 | 1.61 | 3.37 | 0.84 | 4.40 | 0.90 | 0.90 |
| Dec 31, 2018 | 1.06 | 3.92 | 0.79 | 7.19 | 1.49 | 0.94 |
| Dec 31, 2017 | 5.34 | 5.14 | 0.74 | 12.92 | 1.40 | 0.81 |
| Dec 31, 2016 | 1.66 | 6.29 | 0.76 | 11.97 | 1.25 | 1.01 |
| Dec 31, 2015 | 1.64 | 4.67 | 0.68 | 11.25 | 1.54 | 1.03 |
| Dec 31, 2014 | 0.96 | 4.80 | 0.78 | 9.60 | 1.48 | 1.14 |
| Dec 31, 2013 | 1.86 | 4.58 | 0.74 | 11.88 | 1.42 | 1.21 |
| Dec 31, 2012 | 2.89 | 4.22 | 1.20 | 10.71 | 1.34 | 1.07 |
| Dec 31, 2011 | 3.26 | 5.92 | 0.65 | — | 1.49 | 1.14 |
| Dec 31, 2010 | 2.21 | 4.16 | 1.08 | — | 1.65 | 1.11 |
| Dec 31, 2009 | 2.13 | 10.62 | 0.44 | — | 1.82 | 1.33 |
| Dec 31, 2008 | 1.04 | 8.77 | 0.42 | — | 1.67 | 1.01 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
Comparison to Sector (Media & Entertainment)
Warner Bros. Discovery Inc., current ratio, long-term trends, comparison to sector (media & entertainment)
| Warner Bros. Discovery Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2021 | 2.10 | 2.08 |
| Dec 31, 2020 | 1.99 | 2.38 |
| Dec 31, 2019 | 1.61 | 2.16 |
| Dec 31, 2018 | 1.06 | 2.51 |
| Dec 31, 2017 | 5.34 | 2.85 |
| Dec 31, 2016 | 1.66 | 2.86 |
| Dec 31, 2015 | 1.64 | 2.47 |
| Dec 31, 2014 | 0.96 | 2.46 |
| Dec 31, 2013 | 1.86 | 2.35 |
| Dec 31, 2012 | 2.89 | 2.31 |
| Dec 31, 2011 | 3.26 | 2.17 |
| Dec 31, 2010 | 2.21 | 2.14 |
| Dec 31, 2009 | 2.13 | 2.33 |
| Dec 31, 2008 | 1.04 | 1.56 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
Comparison to Industry (Communication Services)
Warner Bros. Discovery Inc., current ratio, long-term trends, comparison to industry (communication services)
| Warner Bros. Discovery Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2021 | 2.10 | 1.41 |
| Dec 31, 2020 | 1.99 | 1.74 |
| Dec 31, 2019 | 1.61 | 1.49 |
| Dec 31, 2018 | 1.06 | 1.59 |
| Dec 31, 2017 | 5.34 | 1.65 |
| Dec 31, 2016 | 1.66 | 1.69 |
| Dec 31, 2015 | 1.64 | 1.45 |
| Dec 31, 2014 | 0.96 | 1.61 |
| Dec 31, 2013 | 1.86 | 1.90 |
| Dec 31, 2012 | 2.89 | 1.44 |
| Dec 31, 2011 | 3.26 | 1.35 |
| Dec 31, 2010 | 2.21 | 1.12 |
| Dec 31, 2009 | 2.13 | 1.08 |
| Dec 31, 2008 | 1.04 | 0.93 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).