Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Warner Bros. Discovery Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Warner Bros. Discovery Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Warner Bros. Discovery Inc. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Warner Bros. Discovery Inc. net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Warner Bros. Discovery Inc. ROE deteriorated from 2019 to 2020 and from 2020 to 2021. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Warner Bros. Discovery Inc. ROA deteriorated from 2019 to 2020 and from 2020 to 2021. |
Gross Profit Margin
Warner Bros. Discovery Inc., gross profit margin 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) | ||||||
| Gross profit | 7,571) | 6,811) | 7,325) | 6,618) | 4,217) | |
| Revenues | 12,191) | 10,671) | 11,144) | 10,553) | 6,873) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 62.10% | 63.83% | 65.73% | 62.71% | 61.36% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 56.94% | 53.58% | 55.58% | — | — | |
| Comcast Corp. | 66.96% | 68.02% | 68.39% | — | — | |
| Meta Platforms Inc. | 80.79% | 80.58% | 81.94% | — | — | |
| Netflix Inc. | 41.64% | 38.89% | 38.28% | — | — | |
| Walt Disney Co. | 33.06% | 32.89% | 39.60% | 44.94% | — | |
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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 7,571 ÷ 12,191 = 62.10%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Warner Bros. Discovery Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Operating Profit Margin
Warner Bros. Discovery Inc., operating profit margin 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) | ||||||
| Operating income | 2,012) | 2,515) | 3,009) | 1,934) | 713) | |
| Revenues | 12,191) | 10,671) | 11,144) | 10,553) | 6,873) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 16.50% | 23.57% | 27.00% | 18.33% | 10.37% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 30.55% | 22.59% | 21.15% | — | — | |
| Comcast Corp. | 17.89% | 16.89% | 19.39% | — | — | |
| Meta Platforms Inc. | 39.65% | 38.01% | 33.93% | — | — | |
| Netflix Inc. | 20.86% | 18.34% | 12.92% | — | — | |
| Walt Disney Co. | 4.46% | -2.97% | 15.33% | 24.91% | — | |
| Operating Profit Margin, Sector | ||||||
| Media & Entertainment | 26.39% | 20.33% | 21.48% | — | — | |
| Operating Profit Margin, Industry | ||||||
| Communication Services | 22.45% | 16.35% | 19.85% | — | — | |
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
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 2,012 ÷ 12,191 = 16.50%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Warner Bros. Discovery Inc. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Net Profit Margin
Warner Bros. Discovery Inc., net profit margin 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) | |
| Revenues | 12,191) | 10,671) | 11,144) | 10,553) | 6,873) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 8.25% | 11.42% | 18.57% | 5.63% | -4.90% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 29.51% | 22.06% | 21.22% | — | — | |
| Comcast Corp. | 12.17% | 10.17% | 11.99% | — | — | |
| Meta Platforms Inc. | 33.38% | 33.90% | 26.15% | — | — | |
| Netflix Inc. | 17.23% | 11.05% | 9.26% | — | — | |
| Walt Disney Co. | 2.96% | -4.38% | 15.89% | 21.20% | — | |
| Net Profit Margin, Sector | ||||||
| Media & Entertainment | 23.20% | 17.27% | 18.28% | — | — | |
| Net Profit Margin, Industry | ||||||
| Communication Services | 18.71% | 11.50% | 14.63% | — | — | |
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
Net profit margin = 100 × Net income (loss) available to Discovery, Inc. ÷ Revenues
= 100 × 1,006 ÷ 12,191 = 8.25%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Warner Bros. Discovery Inc. net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Return on Equity (ROE)
Warner Bros. Discovery Inc., ROE 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) | |
| Total Discovery, Inc. stockholders’ equity | 11,599) | 10,464) | 9,891) | 8,386) | 4,610) | |
| Profitability Ratio | ||||||
| ROE1 | 8.67% | 11.65% | 20.92% | 7.08% | -7.31% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Alphabet Inc. | 30.22% | 18.09% | 17.05% | — | — | |
| Comcast Corp. | 14.73% | 11.66% | 15.78% | — | — | |
| Meta Platforms Inc. | 31.53% | 22.72% | 18.29% | — | — | |
| Netflix Inc. | 32.28% | 24.96% | 24.62% | — | — | |
| Walt Disney Co. | 2.25% | -3.43% | 12.44% | 25.83% | — | |
| ROE, Sector | ||||||
| Media & Entertainment | 23.69% | 14.90% | 16.36% | — | — | |
| ROE, Industry | ||||||
| Communication Services | 20.34% | 11.50% | 15.27% | — | — | |
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
ROE = 100 × Net income (loss) available to Discovery, Inc. ÷ Total Discovery, Inc. stockholders’ equity
= 100 × 1,006 ÷ 11,599 = 8.67%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Warner Bros. Discovery Inc. ROE deteriorated from 2019 to 2020 and from 2020 to 2021. |
Return on Assets (ROA)
Warner Bros. Discovery Inc., ROA 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) | |
| Total assets | 34,427) | 34,087) | 33,735) | 32,550) | 22,555) | |
| Profitability Ratio | ||||||
| ROA1 | 2.92% | 3.58% | 6.13% | 1.82% | -1.49% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Alphabet Inc. | 21.16% | 12.60% | 12.45% | — | — | |
| Comcast Corp. | 5.13% | 3.85% | 4.96% | — | — | |
| Meta Platforms Inc. | 23.72% | 18.29% | 13.86% | — | — | |
| Netflix Inc. | 11.48% | 7.03% | 5.49% | — | — | |
| Walt Disney Co. | 0.98% | -1.42% | 5.70% | 12.78% | — | |
| ROA, Sector | ||||||
| Media & Entertainment | 13.02% | 8.04% | 8.75% | — | — | |
| ROA, Industry | ||||||
| Communication Services | 8.36% | 4.69% | 6.30% | — | — | |
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
ROA = 100 × Net income (loss) available to Discovery, Inc. ÷ Total assets
= 100 × 1,006 ÷ 34,427 = 2.92%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Warner Bros. Discovery Inc. ROA deteriorated from 2019 to 2020 and from 2020 to 2021. |