Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Warner Bros. Discovery Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The analysis of the quarterly financial ratios over the observed periods reveals several notable trends and changes in the company's operational efficiency and asset utilization.
- Net Fixed Asset Turnover
- This ratio initially exhibited an increasing trend, rising steadily from 8.15 in March 2018 to a peak of 13.66 in March 2019, indicating improved efficiency in generating revenue from fixed assets. However, following this peak, there was a gradual decline in the ratio through the end of 2020, reaching as low as 8.85 in December 2020. From 2021 through early 2022, the ratio stabilized around the 9.0 to 9.5 range. A significant drop is observed in the mid and late 2022 periods, falling sharply to 3.45 in June 2022 before slightly recovering to 5.05 in September 2022. This sharp decrease may suggest recent challenges in utilizing fixed assets effectively or changes in asset base or revenue generation impacting this indicator.
- Total Asset Turnover
- The total asset turnover ratio showed a positive trend from 0.22 in March 2018, increasing steadily and peaking at 0.37 in March 2022. This indicates an improvement in the company's ability to generate sales from its total asset base over the years. However, similar to net fixed asset turnover, a notable decline occurred in mid-2022, with ratios dropping to 0.14 in June 2022 and slightly recovering to 0.19 in September 2022. This pattern suggests a recent decrease in efficiency in utilizing overall assets to generate revenue, possibly related to operational or market conditions.
- Equity Turnover
- The equity turnover ratio started at 0.96 in March 2018 and increased gradually to around 1.26 by March 2019, reflecting improved use of shareholder equity to generate revenue. From 2019 through early 2022, the ratio generally hovered between 1.00 and 1.17, indicating relative stability in equity utilization. However, in mid-2022, a sharp decline is evident, with the ratio dropping to 0.38 in June 2022 and then slightly increasing to 0.54 in September 2022. This sudden decrease points to recent inefficiencies in using equity capital to drive sales, potentially due to earnings fluctuations or changes in equity structure.
Net Fixed Asset Turnover
Warner Bros. Discovery Inc., net fixed asset turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenues | 9,823) | 9,827) | 3,159) | 3,187) | 3,150) | 3,062) | 2,792) | 2,886) | 2,561) | 2,541) | 2,683) | 2,874) | 2,678) | 2,885) | 2,707) | 2,809) | 2,592) | 2,845) | 2,307) | ||||||
| Property and equipment, net | 5,143) | 5,597) | 1,328) | 1,336) | 1,310) | 1,239) | 1,189) | 1,206) | 1,125) | 1,088) | 1,040) | 951) | 856) | 828) | 802) | 800) | 810) | 784) | 928) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover1 | 5.05 | 3.45 | 9.46 | 9.13 | 9.08 | 9.12 | 9.07 | 8.85 | 9.47 | 9.90 | 10.69 | 11.72 | 12.94 | 13.28 | 13.66 | 13.19 | 11.86 | 11.05 | 8.15 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 2.60 | 2.62 | 2.59 | 2.64 | 2.53 | 2.40 | 2.25 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | 2.26 | 2.27 | 2.23 | 2.15 | 2.15 | 2.07 | 1.99 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | 1.60 | 1.77 | 1.94 | 2.04 | 2.09 | 2.06 | 1.98 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | 22.93 | 22.78 | 21.97 | 22.44 | 23.47 | 24.91 | 25.99 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | 8.93 | 9.98 | 9.89 | 8.81 | 8.16 | 8.30 | 7.72 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | 2.42 | 2.33 | 2.23 | 2.07 | 1.96 | 1.82 | 1.88 | 2.04 | 2.19 | 2.43 | 2.36 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Net fixed asset turnover
= (RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021)
÷ Property and equipment, net
= (9,823 + 9,827 + 3,159 + 3,187)
÷ 5,143 = 5.05
2 Click competitor name to see calculations.
The financial data exhibits several notable trends over the periods presented.
- Revenues
- Revenues show a generally stable but fluctuating pattern, with quarterly figures ranging mostly between approximately $2,300 million and $3,200 million in the earlier years. Sales peaked near the end of 2021 and into early 2022, with the highest quarterly revenue reaching $3,187 million. However, there is a significant outlier in mid-2022, where revenues abruptly spike to $9,827 million and then maintain a similarly high value in the next quarter, suggesting an extraordinary event or accounting change influencing reported revenues in these latest periods.
- Property and Equipment, Net
- This asset category shows a consistent upward trend over time, rising from $928 million in early 2018 to approximately $1,336 million by the end of 2021. This steady increase indicates ongoing investment in fixed assets. However, in 2022, the reported figures jump significantly to $5,597 million and then decrease slightly to $5,143 million in the subsequent quarter. This sharp increase may coincide with the surge seen in revenues and could reflect asset revaluation, acquisition, or capitalization of significant new investments.
- Net Fixed Asset Turnover Ratio
- The ratio, which measures how efficiently the company uses its fixed assets to generate revenues, shows a declining trend from 2018 through 2021. Starting from a high of 13.66 in March 2019, the ratio gradually decreases to around 9.13 by the end of 2021, indicating that revenue generation per unit of fixed assets has become less efficient over this period. Notably, in 2022, this ratio experiences a sharp drop to values of 3.45 and 5.05, which aligns with the dramatic increase in property and equipment values; this suggests that while the asset base expanded considerably, the corresponding revenue generation has not increased proportionally.
Total Asset Turnover
Warner Bros. Discovery Inc., total asset turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenues | 9,823) | 9,827) | 3,159) | 3,187) | 3,150) | 3,062) | 2,792) | 2,886) | 2,561) | 2,541) | 2,683) | 2,874) | 2,678) | 2,885) | 2,707) | 2,809) | 2,592) | 2,845) | 2,307) | ||||||
| Total assets | 136,049) | 142,240) | 33,799) | 34,427) | 34,318) | 34,572) | 33,625) | 34,087) | 33,438) | 33,089) | 33,390) | 33,735) | 32,825) | 33,845) | 32,444) | 32,550) | 32,912) | 33,492) | 34,658) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Total asset turnover1 | 0.19 | 0.14 | 0.37 | 0.35 | 0.35 | 0.33 | 0.32 | 0.31 | 0.32 | 0.33 | 0.33 | 0.33 | 0.34 | 0.32 | 0.34 | 0.32 | 0.29 | 0.26 | 0.22 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 0.79 | 0.78 | 0.76 | 0.72 | 0.69 | 0.66 | 0.60 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | 0.48 | 0.46 | 0.44 | 0.42 | 0.41 | 0.39 | 0.37 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | 0.66 | 0.70 | 0.73 | 0.71 | 0.66 | 0.61 | 0.58 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | 0.66 | 0.67 | 0.67 | 0.67 | 0.67 | 0.67 | 0.66 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | 0.38 | 0.38 | 0.38 | 0.33 | 0.37 | 0.37 | 0.34 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | 0.40 | 0.38 | 0.36 | 0.33 | 0.31 | 0.29 | 0.30 | 0.32 | 0.34 | 0.38 | 0.37 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Total asset turnover
= (RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021)
÷ Total assets
= (9,823 + 9,827 + 3,159 + 3,187)
÷ 136,049 = 0.19
2 Click competitor name to see calculations.
The financial data reveals several key trends in the company’s quarterly performance over the observed periods.
- Revenues
- Revenues exhibit variability on a quarterly basis, generally maintaining a range between approximately 2,300 million USD and 3,200 million USD. There is a discernible seasonal pattern with peaks often occurring in the fourth quarter each year. Despite some fluctuations, the revenues show a slight upward trend over the multi-year span, with the highest figures recorded in the last quarters of 2021 and early 2022. However, a notable anomaly appears in mid-2022 where a substantial surge to nearly 9,800 million USD is observed, which likely reflects a one-time event or accounting change rather than organic revenue growth.
- Total assets
- Total assets remain relatively stable over the quarters, fluctuating between roughly 32,500 million USD and 35,000 million USD for most of the period analyzed. Similar to revenues, a sharp increase appears in mid-2022 with assets reaching over 140,000 million USD, indicating a significant acquisition, investment, or revaluation event that materially altered the company’s asset base. Prior to this event, assets slightly trended upward but without significant volatility.
- Total asset turnover
- The total asset turnover ratio demonstrates gradual improvement over the years, increasing from around 0.22 in early 2018 to approximately 0.37 by late 2021. This indicates enhanced efficiency in utilizing assets to generate revenues during that timeframe. However, following the large increase in total assets in 2022, the turnover ratio substantially declined to between 0.14 and 0.19, reflecting the disproportionate growth in asset base relative to revenues in those periods. This suggests that the recent asset increase has not yet translated into proportional revenue generation.
In summary, the data indicates steady revenue and asset growth with improved asset utilization efficiency up to 2021. The notable expansions in revenues and assets in 2022 signal a transformative event impacting the company's scale. The decline in turnover ratio during this period highlights the need to monitor how effectively the enlarged asset base is leveraged for revenue generation going forward.
Equity Turnover
Warner Bros. Discovery Inc., equity turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenues | 9,823) | 9,827) | 3,159) | 3,187) | 3,150) | 3,062) | 2,792) | 2,886) | 2,561) | 2,541) | 2,683) | 2,874) | 2,678) | 2,885) | 2,707) | 2,809) | 2,592) | 2,845) | 2,307) | ||||||
| Total Warner Bros. Discovery, Inc. stockholders’ equity | 48,517) | 51,383) | 11,969) | 11,599) | 11,611) | 11,538) | 10,815) | 10,464) | 10,087) | 9,867) | 9,470) | 9,891) | 9,518) | 9,621) | 8,708) | 8,386) | 8,116) | 7,936) | 7,889) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Equity turnover1 | 0.54 | 0.38 | 1.05 | 1.05 | 1.02 | 0.98 | 1.00 | 1.02 | 1.06 | 1.09 | 1.17 | 1.13 | 1.16 | 1.14 | 1.26 | 1.26 | 1.18 | 1.09 | 0.96 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 1.11 | 1.09 | 1.06 | 1.02 | 0.98 | 0.93 | 0.86 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | 1.51 | 1.33 | 1.27 | 1.21 | 1.19 | 1.15 | 1.13 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | 0.95 | 0.95 | 0.97 | 0.94 | 0.84 | 0.76 | 0.71 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | 1.53 | 1.63 | 1.73 | 1.87 | 1.87 | 1.99 | 2.05 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | 0.77 | 0.78 | 0.78 | 0.78 | 0.86 | 0.86 | 0.83 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | 0.88 | 0.85 | 0.81 | 0.76 | 0.73 | 0.68 | 0.72 | 0.78 | 0.81 | 0.87 | 0.84 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Equity turnover
= (RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021)
÷ Total Warner Bros. Discovery, Inc. stockholders’ equity
= (9,823 + 9,827 + 3,159 + 3,187)
÷ 48,517 = 0.54
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues exhibited a fluctuating pattern over the examined periods. Initially, they increased from 2,307 million USD in the first quarter of 2018 to a peak of 2,874 million USD at the end of 2019. This was followed by a decline in 2020, reaching a low point around mid-year, which may correspond to external market disruptions. From late 2020 onward, revenues recovered steadily, achieving a new high exceeding 3,100 million USD in the quarters of 2021 and early 2022. However, a significant increase to over 9,800 million USD is observed in mid and late 2022, suggesting a possible change in reporting or consolidation effects.
- Stockholders’ Equity
- Stockholders’ equity showed consistent growth throughout the periods, rising from approximately 7,889 million USD at the beginning of 2018 to nearly 12,000 million USD by early 2022. The quarterly increments were steady, indicating a strengthening equity base. Notably, in mid and late 2022, the equity balance jumps dramatically to over 48,000 million USD, coinciding with a similar jump in revenues. This substantial increase could be indicative of corporate actions such as mergers, acquisitions, or a comprehensive revaluation of assets.
- Equity Turnover Ratio
- The equity turnover ratio started near 0.96 in early 2018 and increased slightly to peak around 1.26 in late 2018 and early 2019, showing efficiency gains in generating revenues from equity. After this high point, the ratio gradually decreased to just above 1.0 through 2020 and 2021, reflecting a modest decline in operational efficiency relative to equity employed. In early 2022, the ratio is around 1.05 but then declines sharply to 0.38 and 0.54 in the later periods of 2022. This sharp decrease is consistent with the large equity base recorded, diluting the revenue generation per unit of equity.
- Overall Insights
- The financial data indicate a period of growth and recovery in revenues until early 2020, followed by a pandemic-related downturn and subsequent recovery through 2021. The sharp expansions in both revenues and equity during 2022 suggest major structural changes, such as acquisitions or reclassifications. The declining equity turnover in the latest periods reflects the enlarged equity base, impacting efficiency measures. Continuous monitoring will be essential to assess the integration and profitability implications of these transformations.