Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Warner Bros. Discovery Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Warner Bros. Discovery Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Warner Bros. Discovery Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Warner Bros. Discovery Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Warner Bros. Discovery Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Warner Bros. Discovery Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Warner Bros. Discovery Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Warner Bros. Discovery Inc. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Warner Bros. Discovery Inc. interest coverage ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Warner Bros. Discovery Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity
Warner Bros. Discovery Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Finance lease liabilities, current | 58) | 57) | 47) | —) | —) | |
| Current portion of debt | 339) | 335) | 609) | 1,860) | 30) | |
| Noncurrent portion of debt | 14,420) | 15,069) | 14,810) | 15,185) | 14,755) | |
| Finance lease liabilities, noncurrent | 197) | 184) | 203) | —) | —) | |
| Total debt | 15,014) | 15,645) | 15,669) | 17,045) | 14,785) | |
| Total Discovery, Inc. stockholders’ equity | 11,599) | 10,464) | 9,891) | 8,386) | 4,610) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.29 | 1.50 | 1.58 | 2.03 | 3.21 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Alphabet Inc. | 0.06 | 0.07 | 0.02 | — | — | |
| Comcast Corp. | 0.99 | 1.15 | 1.24 | — | — | |
| Meta Platforms Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Netflix Inc. | 0.97 | 1.47 | 1.95 | — | — | |
| Walt Disney Co. | 0.62 | 0.71 | 0.53 | 0.43 | — | |
| Debt to Equity, Sector | ||||||
| Media & Entertainment | 0.31 | 0.36 | 0.35 | — | — | |
| Debt to Equity, Industry | ||||||
| Communication Services | 0.65 | 0.67 | 0.62 | — | — | |
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).
1 2021 Calculation
Debt to equity = Total debt ÷ Total Discovery, Inc. stockholders’ equity
= 15,014 ÷ 11,599 = 1.29
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Warner Bros. Discovery Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity (including Operating Lease Liability)
Warner Bros. Discovery Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Finance lease liabilities, current | 58) | 57) | 47) | —) | —) | |
| Current portion of debt | 339) | 335) | 609) | 1,860) | 30) | |
| Noncurrent portion of debt | 14,420) | 15,069) | 14,810) | 15,185) | 14,755) | |
| Finance lease liabilities, noncurrent | 197) | 184) | 203) | —) | —) | |
| Total debt | 15,014) | 15,645) | 15,669) | 17,045) | 14,785) | |
| Operating lease liabilities, current (included in Accrued liabilities) | 62) | 71) | 82) | —) | —) | |
| Operating lease liabilities, noncurrent (included in Other noncurrent liabilities) | 567) | 592) | 621) | —) | —) | |
| Total debt (including operating lease liability) | 15,643) | 16,308) | 16,372) | 17,045) | 14,785) | |
| Total Discovery, Inc. stockholders’ equity | 11,599) | 10,464) | 9,891) | 8,386) | 4,610) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.35 | 1.56 | 1.66 | 2.03 | 3.21 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.11 | 0.13 | 0.08 | — | — | |
| Comcast Corp. | 1.06 | 1.20 | 1.29 | — | — | |
| Meta Platforms Inc. | 0.12 | 0.09 | 0.11 | — | — | |
| Netflix Inc. | 1.14 | 1.67 | 2.16 | — | — | |
| Walt Disney Co. | 0.66 | 0.75 | 0.53 | 0.43 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.38 | 0.43 | 0.41 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.79 | 0.80 | 0.74 | — | — | |
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).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Discovery, Inc. stockholders’ equity
= 15,643 ÷ 11,599 = 1.35
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Warner Bros. Discovery Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital
Warner Bros. Discovery Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Finance lease liabilities, current | 58) | 57) | 47) | —) | —) | |
| Current portion of debt | 339) | 335) | 609) | 1,860) | 30) | |
| Noncurrent portion of debt | 14,420) | 15,069) | 14,810) | 15,185) | 14,755) | |
| Finance lease liabilities, noncurrent | 197) | 184) | 203) | —) | —) | |
| Total debt | 15,014) | 15,645) | 15,669) | 17,045) | 14,785) | |
| Total Discovery, Inc. stockholders’ equity | 11,599) | 10,464) | 9,891) | 8,386) | 4,610) | |
| Total capital | 26,613) | 26,109) | 25,560) | 25,431) | 19,395) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.56 | 0.60 | 0.61 | 0.67 | 0.76 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Alphabet Inc. | 0.06 | 0.06 | 0.02 | — | — | |
| Comcast Corp. | 0.50 | 0.53 | 0.55 | — | — | |
| Meta Platforms Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Netflix Inc. | 0.49 | 0.60 | 0.66 | — | — | |
| Walt Disney Co. | 0.38 | 0.41 | 0.35 | 0.30 | — | |
| Debt to Capital, Sector | ||||||
| Media & Entertainment | 0.24 | 0.27 | 0.26 | — | — | |
| Debt to Capital, Industry | ||||||
| Communication Services | 0.40 | 0.40 | 0.38 | — | — | |
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).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 15,014 ÷ 26,613 = 0.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Warner Bros. Discovery Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
Warner Bros. Discovery Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Finance lease liabilities, current | 58) | 57) | 47) | —) | —) | |
| Current portion of debt | 339) | 335) | 609) | 1,860) | 30) | |
| Noncurrent portion of debt | 14,420) | 15,069) | 14,810) | 15,185) | 14,755) | |
| Finance lease liabilities, noncurrent | 197) | 184) | 203) | —) | —) | |
| Total debt | 15,014) | 15,645) | 15,669) | 17,045) | 14,785) | |
| Operating lease liabilities, current (included in Accrued liabilities) | 62) | 71) | 82) | —) | —) | |
| Operating lease liabilities, noncurrent (included in Other noncurrent liabilities) | 567) | 592) | 621) | —) | —) | |
| Total debt (including operating lease liability) | 15,643) | 16,308) | 16,372) | 17,045) | 14,785) | |
| Total Discovery, Inc. stockholders’ equity | 11,599) | 10,464) | 9,891) | 8,386) | 4,610) | |
| Total capital (including operating lease liability) | 27,242) | 26,772) | 26,263) | 25,431) | 19,395) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.57 | 0.61 | 0.62 | 0.67 | 0.76 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.10 | 0.11 | 0.07 | — | — | |
| Comcast Corp. | 0.52 | 0.55 | 0.56 | — | — | |
| Meta Platforms Inc. | 0.10 | 0.08 | 0.10 | — | — | |
| Netflix Inc. | 0.53 | 0.63 | 0.68 | — | — | |
| Walt Disney Co. | 0.40 | 0.43 | 0.35 | 0.30 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.28 | 0.30 | 0.29 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.44 | 0.44 | 0.43 | — | — | |
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).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 15,643 ÷ 27,242 = 0.57
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Warner Bros. Discovery Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets
Warner Bros. Discovery Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Finance lease liabilities, current | 58) | 57) | 47) | —) | —) | |
| Current portion of debt | 339) | 335) | 609) | 1,860) | 30) | |
| Noncurrent portion of debt | 14,420) | 15,069) | 14,810) | 15,185) | 14,755) | |
| Finance lease liabilities, noncurrent | 197) | 184) | 203) | —) | —) | |
| Total debt | 15,014) | 15,645) | 15,669) | 17,045) | 14,785) | |
| Total assets | 34,427) | 34,087) | 33,735) | 32,550) | 22,555) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.44 | 0.46 | 0.46 | 0.52 | 0.66 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Alphabet Inc. | 0.04 | 0.05 | 0.02 | — | — | |
| Comcast Corp. | 0.34 | 0.38 | 0.39 | — | — | |
| Meta Platforms Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Netflix Inc. | 0.35 | 0.42 | 0.43 | — | — | |
| Walt Disney Co. | 0.27 | 0.29 | 0.24 | 0.21 | — | |
| Debt to Assets, Sector | ||||||
| Media & Entertainment | 0.17 | 0.20 | 0.19 | — | — | |
| Debt to Assets, Industry | ||||||
| Communication Services | 0.27 | 0.27 | 0.26 | — | — | |
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).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 15,014 ÷ 34,427 = 0.44
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Warner Bros. Discovery Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
Warner Bros. Discovery Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Finance lease liabilities, current | 58) | 57) | 47) | —) | —) | |
| Current portion of debt | 339) | 335) | 609) | 1,860) | 30) | |
| Noncurrent portion of debt | 14,420) | 15,069) | 14,810) | 15,185) | 14,755) | |
| Finance lease liabilities, noncurrent | 197) | 184) | 203) | —) | —) | |
| Total debt | 15,014) | 15,645) | 15,669) | 17,045) | 14,785) | |
| Operating lease liabilities, current (included in Accrued liabilities) | 62) | 71) | 82) | —) | —) | |
| Operating lease liabilities, noncurrent (included in Other noncurrent liabilities) | 567) | 592) | 621) | —) | —) | |
| Total debt (including operating lease liability) | 15,643) | 16,308) | 16,372) | 17,045) | 14,785) | |
| Total assets | 34,427) | 34,087) | 33,735) | 32,550) | 22,555) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.45 | 0.48 | 0.49 | 0.52 | 0.66 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.08 | 0.09 | 0.06 | — | — | |
| Comcast Corp. | 0.37 | 0.40 | 0.41 | — | — | |
| Meta Platforms Inc. | 0.09 | 0.07 | 0.08 | — | — | |
| Netflix Inc. | 0.41 | 0.47 | 0.48 | — | — | |
| Walt Disney Co. | 0.29 | 0.31 | 0.24 | 0.21 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.21 | 0.23 | 0.22 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.33 | 0.33 | 0.31 | — | — | |
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).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 15,643 ÷ 34,427 = 0.45
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Warner Bros. Discovery Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Financial Leverage
Warner Bros. Discovery Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 34,427) | 34,087) | 33,735) | 32,550) | 22,555) | |
| Total Discovery, Inc. stockholders’ equity | 11,599) | 10,464) | 9,891) | 8,386) | 4,610) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.97 | 3.26 | 3.41 | 3.88 | 4.89 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Alphabet Inc. | 1.43 | 1.44 | 1.37 | — | — | |
| Comcast Corp. | 2.87 | 3.03 | 3.18 | — | — | |
| Meta Platforms Inc. | 1.33 | 1.24 | 1.32 | — | — | |
| Netflix Inc. | 2.81 | 3.55 | 4.48 | — | — | |
| Walt Disney Co. | 2.30 | 2.41 | 2.18 | 2.02 | — | |
| Financial Leverage, Sector | ||||||
| Media & Entertainment | 1.82 | 1.85 | 1.87 | — | — | |
| Financial Leverage, Industry | ||||||
| Communication Services | 2.43 | 2.45 | 2.42 | — | — | |
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).
1 2021 Calculation
Financial leverage = Total assets ÷ Total Discovery, Inc. stockholders’ equity
= 34,427 ÷ 11,599 = 2.97
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Warner Bros. Discovery Inc. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021. |
Interest Coverage
Warner Bros. Discovery Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) available to Discovery, Inc. | 1,006) | 1,219) | 2,069) | 594) | (337) | |
| Add: Net income attributable to noncontrolling interest | 191) | 136) | 144) | 87) | 24) | |
| Add: Income tax expense | 236) | 373) | 81) | 341) | 176) | |
| Add: Interest expense, net | 633) | 648) | 677) | 729) | 475) | |
| Earnings before interest and tax (EBIT) | 2,066) | 2,376) | 2,971) | 1,751) | 338) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 3.26 | 3.67 | 4.39 | 2.40 | 0.71 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Alphabet Inc. | 263.24 | 357.16 | 397.25 | — | — | |
| Comcast Corp. | 5.46 | 4.07 | 4.72 | — | — | |
| Meta Platforms Inc. | 3,153.27 | 2,371.00 | 1,241.60 | — | — | |
| Netflix Inc. | 8.63 | 5.17 | 4.29 | — | — | |
| Walt Disney Co. | 2.66 | -0.06 | 12.19 | 22.60 | — | |
| Interest Coverage, Sector | ||||||
| Media & Entertainment | 24.80 | 14.53 | 15.86 | — | — | |
| Interest Coverage, Industry | ||||||
| Communication Services | 11.90 | 6.51 | 7.88 | — | — | |
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).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,066 ÷ 633 = 3.26
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Warner Bros. Discovery Inc. interest coverage ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Fixed Charge Coverage
Warner Bros. Discovery Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) available to Discovery, Inc. | 1,006) | 1,219) | 2,069) | 594) | (337) | |
| Add: Net income attributable to noncontrolling interest | 191) | 136) | 144) | 87) | 24) | |
| Add: Income tax expense | 236) | 373) | 81) | 341) | 176) | |
| Add: Interest expense, net | 633) | 648) | 677) | 729) | 475) | |
| Earnings before interest and tax (EBIT) | 2,066) | 2,376) | 2,971) | 1,751) | 338) | |
| Add: Operating lease cost | 103) | 116) | 114) | 205) | 127) | |
| Earnings before fixed charges and tax | 2,169) | 2,492) | 3,085) | 1,956) | 465) | |
| Interest expense, net | 633) | 648) | 677) | 729) | 475) | |
| Operating lease cost | 103) | 116) | 114) | 205) | 127) | |
| Fixed charges | 736) | 764) | 791) | 934) | 602) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 2.95 | 3.26 | 3.90 | 2.09 | 0.77 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Alphabet Inc. | 25.06 | 16.92 | 17.10 | — | — | |
| Comcast Corp. | 4.48 | 3.47 | 4.00 | — | — | |
| Meta Platforms Inc. | 31.41 | 24.62 | 22.41 | — | — | |
| Netflix Inc. | 5.46 | 3.65 | 2.92 | — | — | |
| Walt Disney Co. | 2.07 | 0.32 | 6.94 | 10.14 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Media & Entertainment | 12.40 | 7.98 | 8.67 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Communication Services | 5.95 | 3.73 | 4.58 | — | — | |
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).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,169 ÷ 736 = 2.95
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Warner Bros. Discovery Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |