Return on Equity (ROE)
since 2008
Calculation
Warner Bros. Discovery Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) available to Discovery, Inc.1 | ÷ | Total Discovery, Inc. stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 8.67% | = | 100 | × | 1,006) | ÷ | 11,599) |
| Dec 31, 2020 | 11.65% | = | 100 | × | 1,219) | ÷ | 10,464) |
| Dec 31, 2019 | 20.92% | = | 100 | × | 2,069) | ÷ | 9,891) |
| Dec 31, 2018 | 7.08% | = | 100 | × | 594) | ÷ | 8,386) |
| Dec 31, 2017 | -7.31% | = | 100 | × | (337) | ÷ | 4,610) |
| Dec 31, 2016 | 23.11% | = | 100 | × | 1,194) | ÷ | 5,167) |
| Dec 31, 2015 | 18.97% | = | 100 | × | 1,034) | ÷ | 5,451) |
| Dec 31, 2014 | 20.33% | = | 100 | × | 1,139) | ÷ | 5,602) |
| Dec 31, 2013 | 17.35% | = | 100 | × | 1,075) | ÷ | 6,196) |
| Dec 31, 2012 | 14.99% | = | 100 | × | 943) | ÷ | 6,291) |
| Dec 31, 2011 | 17.37% | = | 100 | × | 1,132) | ÷ | 6,517) |
| Dec 31, 2010 | 10.49% | = | 100 | × | 653) | ÷ | 6,225) |
| Dec 31, 2009 | 9.02% | = | 100 | × | 560) | ÷ | 6,208) |
| Dec 31, 2008 | 5.73% | = | 100 | × | 317) | ÷ | 5,536) |
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 financial performance from 2008 to 2021 is characterized by a period of sustained growth in efficiency and profitability, followed by a phase of significant volatility and capital expansion. Return on Equity (ROE) exhibited a general upward trajectory for the first eight years before experiencing a sharp contraction and a subsequent period of stabilization amidst a growing equity base.
- Efficiency Gains and Profitability Growth (2008–2016)
- A consistent upward trend in ROE is observed from 2008 to 2016, increasing from 5.73% to a peak of 23.11%. This improvement was primarily driven by a substantial increase in net income, which rose from $317 million in 2008 to $1,194 million in 2016. During this interval, stockholders' equity remained relatively stable, fluctuating within a narrow range between approximately $5.1 billion and $6.5 billion, which amplified the positive impact of rising earnings on the ROE ratio.
- Fiscal Anomaly and Contraction (2017)
- A significant reversal occurred in 2017, marked by a net loss of $337 million. This resulted in a negative ROE of -7.31%, the only negative value in the analyzed period. This downturn coincided with the lowest recorded level of stockholders' equity at $4,610 million, indicating a period of acute financial pressure.
- Recovery and Equity Dilution Effect (2018–2021)
- Following the 2017 loss, a recovery in profitability is evident, with net income peaking at $2,069 million in 2019, which drove ROE back up to 20.92%. However, starting in 2018, there was a substantial increase in stockholders' equity, which grew from $8,386 million to $11,599 million by 2021. This expansion of the equity base, coupled with a decline in net income to $1,006 million by 2021, led to a compression of ROE, which fell to 8.67% by the end of the period.
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Comparison to Competitors
Warner Bros. Discovery Inc., ROE, 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 | 8.67% | 30.22% | 14.73% | 31.53% | 32.28% | 2.25% |
| Dec 31, 2020 | 11.65% | 18.09% | 11.66% | 22.72% | 24.96% | -3.43% |
| Dec 31, 2019 | 20.92% | 17.05% | 15.78% | 18.29% | 24.62% | 12.44% |
| Dec 31, 2018 | 7.08% | 17.30% | 16.38% | 26.28% | 23.12% | 25.83% |
| Dec 31, 2017 | -7.31% | 8.30% | 33.11% | 21.43% | 15.60% | 21.74% |
| Dec 31, 2016 | 23.11% | 14.01% | 16.12% | 17.26% | 6.97% | 21.71% |
| Dec 31, 2015 | 18.97% | 13.59% | 15.62% | 8.34% | 5.52% | 18.83% |
| Dec 31, 2014 | 20.33% | 13.82% | 15.90% | 8.14% | 14.36% | 16.68% |
| Dec 31, 2013 | 17.35% | 14.80% | 13.45% | 9.70% | 8.43% | 13.51% |
| Dec 31, 2012 | 14.99% | 14.97% | 12.57% | 0.45% | 2.30% | 14.29% |
| Dec 31, 2011 | 17.37% | 16.75% | 8.80% | — | 35.18% | 12.86% |
| Dec 31, 2010 | 10.49% | 18.39% | 8.20% | — | 55.44% | 10.56% |
| Dec 31, 2009 | 9.02% | 18.11% | 8.52% | — | 58.18% | 9.80% |
| Dec 31, 2008 | 5.73% | 14.97% | 6.30% | — | 23.92% | 13.70% |
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., ROE, long-term trends, comparison to sector (media & entertainment)
| Warner Bros. Discovery Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2021 | 8.67% | 23.69% |
| Dec 31, 2020 | 11.65% | 14.90% |
| Dec 31, 2019 | 20.92% | 16.36% |
| Dec 31, 2018 | 7.08% | 20.24% |
| Dec 31, 2017 | -7.31% | 17.88% |
| Dec 31, 2016 | 23.11% | 16.09% |
| Dec 31, 2015 | 18.97% | 13.93% |
| Dec 31, 2014 | 20.33% | 13.96% |
| Dec 31, 2013 | 17.35% | 13.73% |
| Dec 31, 2012 | 14.99% | 13.09% |
| Dec 31, 2011 | 17.37% | 13.20% |
| Dec 31, 2010 | 10.49% | 12.67% |
| Dec 31, 2009 | 9.02% | 12.06% |
| Dec 31, 2008 | 5.73% | 11.13% |
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., ROE, long-term trends, comparison to industry (communication services)
| Warner Bros. Discovery Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2021 | 8.67% | 20.34% |
| Dec 31, 2020 | 11.65% | 11.50% |
| Dec 31, 2019 | 20.92% | 15.27% |
| Dec 31, 2018 | 7.08% | 17.89% |
| Dec 31, 2017 | -7.31% | 22.85% |
| Dec 31, 2016 | 23.11% | 16.35% |
| Dec 31, 2015 | 18.97% | 16.38% |
| Dec 31, 2014 | 20.33% | 14.00% |
| Dec 31, 2013 | 17.35% | 16.63% |
| Dec 31, 2012 | 14.99% | 10.32% |
| Dec 31, 2011 | 17.37% | 8.87% |
| Dec 31, 2010 | 10.49% | 13.88% |
| Dec 31, 2009 | 9.02% | 11.62% |
| Dec 31, 2008 | 5.73% | 12.77% |
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).