Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Warner Bros. Discovery Inc., profitability 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Gross Profit Margin
- The gross profit margin began being reported from March 31, 2018, showing values in the 58.91% to 66.35% range through 2017 to 2019 periods. The margin peaked around 66% in late 2019 and early 2020, indicating strong operational efficiency in producing goods and services. From 2020 onwards, a gradual decline is noted, with the margin decreasing steadily to 44.01% by September 30, 2022. This decline suggests growing cost pressures or reduced pricing power impacting profitability at the gross level in recent quarters.
- Operating Profit Margin
- Operating profit margin data also starts from March 31, 2018. Initially, margins were modest, ranging between 4% to 5%, but showed significant improvement through 2019 and 2020, reaching a peak of approximately 27% at the end of 2019 and early 2020. This increase reflects enhanced control over operating expenses or an increase in operational leverage. However, from 2021 onwards, there is a marked decline, with margins falling sharply into negative territory by mid-2022, reaching -19.11%. This change signals substantial operational challenges or exceptional losses affecting the core business profitability.
- Net Profit Margin
- The net profit margin displayed negative values initially through early 2018, indicating net losses during that period. A steady improvement occurred from 2018 to early 2020, culminating in net margins exceeding 18%, suggesting recovery and profitability gains. Following this peak, net margin figures fluctuated but remained positive until the end of 2021. Starting in 2022, the margin deteriorated significantly, turning negative and falling below -20% by the latest reported quarter. This sharp downturn may be attributed to increased costs, impairments, or other non-operating expenses adversely impacting net income.
- Return on Equity (ROE)
- ROE was negative in the 2017 to early 2018 period, reaching lows around -10%. From 2018 to early 2020, there was a pronounced rebound, with ROE peaking around 21%, reflecting improved profitability relative to shareholder equity. Post-2020, ROE gradually declined but remained positive until late 2021, after which it turned negative again by 2022, falling to approximately -10.78%. This trend highlights volatility in the company's ability to generate profits from equity, with recent declines indicating reduced investor returns or losses.
- Return on Assets (ROA)
- ROA also started at negative values in early periods, around -2.5%, improving progressively to peak near 6.18% in early 2020. This improvement suggests better asset utilization and operational efficiency during that timeframe. However, similar to other profitability metrics, ROA decreased thereafter, with values dropping below zero by 2022, indicating challenges in effectively generating returns from the asset base.
Return on Sales
Return on Investment
Gross Profit Margin
Warner Bros. Discovery Inc., gross profit margin 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Gross profit | 4,196) | 3,202) | 1,923) | 2,120) | 1,621) | 2,007) | 1,823) | 1,757) | 1,558) | 1,731) | 1,765) | 1,837) | 1,764) | 1,947) | 1,777) | 1,863) | 1,658) | 1,850) | 1,247) | 1,119) | 981) | 1,111) | 1,006) | |||||||
| 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) | 1,864) | 1,651) | 1,745) | 1,613) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | 44.01% | 45.88% | 61.08% | 62.10% | 60.62% | 63.22% | 63.72% | 63.83% | 64.65% | 65.86% | 65.76% | 65.73% | 66.35% | 65.91% | 65.26% | 62.71% | 61.14% | 59.96% | 58.91% | 61.36% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Alphabet Inc. | 56.10% | 56.74% | 56.93% | 56.94% | 56.51% | 55.72% | 54.32% | 53.58% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Comcast Corp. | 68.41% | 67.34% | 66.64% | 66.96% | 66.59% | 66.81% | 67.61% | 68.02% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Meta Platforms Inc. | 80.31% | 80.47% | 80.34% | 80.79% | 80.85% | 80.98% | 80.55% | 80.58% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Netflix Inc. | 39.62% | 40.63% | 41.62% | 41.64% | 43.22% | 42.29% | 41.10% | 38.89% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walt Disney Co. | 34.43% | 33.79% | 34.34% | 33.06% | 31.12% | 30.65% | 29.85% | 32.89% | 35.96% | 36.60% | 38.72% | 39.60% | — | — | — | — | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Gross profit margin = 100
× (Gross profitQ3 2022
+ Gross profitQ2 2022
+ Gross profitQ1 2022
+ Gross profitQ4 2021)
÷ (RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021)
= 100 × (4,196 + 3,202 + 1,923 + 2,120)
÷ (9,823 + 9,827 + 3,159 + 3,187)
= 44.01%
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues demonstrated an overall upward trajectory from March 2017 through June 2022. Notable growth periods include the year 2018, where quarterly revenues consistently increased, peaking at $2,809 million in December 2018. Revenues remained relatively stable around the $2,600 to $3,200 million range from 2019 through early 2022. However, there was a marked and sudden increase in revenues in the last two reported quarters, March and June 2022, reaching $9,827 million and $9,823 million respectively, indicating a significant event or consolidation impacting total revenue.
- Gross Profit Trends
- Gross profit exhibited a generally positive trend alongside revenues but with more volatility. Initial quarters in 2017 showed values between $981 million and $1,119 million. From 2018 to 2021, gross profit displayed fluctuations consistent with revenue movements, with peaks in mid to late 2021 reaching above $2,000 million. The final two quarters again show a steep rise in gross profit, coinciding with the revenue spike, reaching $3,202 million and $4,196 million respectively. This suggests improved scale or profitability during this period.
- Gross Profit Margin Analysis
- Gross profit margin percentages were not provided for 2017 but from March 2018 onward, margins stayed relatively stable in the 58.91% to 66.35% range until late 2021. This indicates consistent efficiency in cost of goods sold relative to revenues during this timeframe. In the final two quarters reported, gross profit margins declined sharply to 45.88% and 44.01%, despite higher absolute gross profits. This decrease implies an increase in cost pressures or a change in business mix that reduced profitability on revenue dollars during these periods.
- Summary of Key Insights
- The data reveals sustained revenue and gross profit growth over several years, with a notable surge in revenue and gross profit in the last two quarters, likely related to structural changes or acquisitions. However, the sharp decline in gross profit margin during these quarters suggests margin compression possibly due to integration costs, higher input costs, or lower-margin revenue sources. This pattern highlights the importance of further analysis of cost structures and business segment performance in the most recent periods to assess profitability sustainability.
Operating Profit Margin
Warner Bros. Discovery Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Operating income (loss) | (2,190) | (3,639) | 353) | 508) | 329) | 779) | 396) | 488) | 531) | 717) | 779) | 705) | 619) | 911) | 774) | 711) | 369) | 650) | 204) | (837) | 433) | 630) | 487) | |||||||
| 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) | 1,864) | 1,651) | 1,745) | 1,613) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | -19.11% | -12.67% | 15.68% | 16.50% | 16.75% | 19.41% | 19.78% | 23.57% | 25.63% | 26.17% | 27.10% | 27.00% | 27.21% | 25.15% | 22.86% | 18.33% | 4.02% | 5.19% | 5.68% | 10.37% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Alphabet Inc. | 27.85% | 29.65% | 30.47% | 30.55% | 30.30% | 28.45% | 25.26% | 22.59% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Comcast Corp. | 11.82% | 18.25% | 17.76% | 17.89% | 17.51% | 17.01% | 16.97% | 16.89% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Meta Platforms Inc. | 29.74% | 33.41% | 36.68% | 39.65% | 41.79% | 42.52% | 40.42% | 38.01% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Netflix Inc. | 18.16% | 19.13% | 20.41% | 20.86% | 22.76% | 22.03% | 21.17% | 18.34% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walt Disney Co. | 8.01% | 7.08% | 6.93% | 4.46% | 2.60% | -7.99% | -7.37% | -2.97% | 1.25% | 10.76% | 13.22% | 15.33% | — | — | — | — | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Operating profit margin = 100
× (Operating income (loss)Q3 2022
+ Operating income (loss)Q2 2022
+ Operating income (loss)Q1 2022
+ Operating income (loss)Q4 2021)
÷ (RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021)
= 100 × (-2,190 + -3,639 + 353 + 508)
÷ (9,823 + 9,827 + 3,159 + 3,187)
= -19.11%
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues demonstrated an overall upward trajectory from early 2017 through mid-2022, increasing from approximately $1.6 billion in Q1 2017 to a peak near $3.2 billion in Q4 2021. The growth was relatively steady with some fluctuations, notably a sharp rise in 2018 and sustained high levels through 2021. A significant drop occurs in the last two quarters of 2022, where revenues fell drastically to around $9.8 billion, indicating an irregular reporting or consolidation effect rather than typical quarterly revenue.
- Operating Income (Loss) Trends
- The operating income displayed a volatile pattern. Initial quarters in 2017 saw positive operating income with a notable dip to a loss in Q4 2017 (-$837 million). Following that, operating income stabilized with positive values through 2018 and most of 2019 and 2020, peaking around $900 million in 2019 Q2. There is another decline in late 2021 and a sharp, substantial loss in Q3 and Q4 2022 (-$3.6 billion and -$2.2 billion respectively), marking a significant deviation from prior profitability.
- Operating Profit Margin Analysis
- Profit margins were absent or unprovided in early 2017 data but appeared positive starting Q1 2018. Margins generally remained robust between 16% and 27% from 2018 through 2021, indicating efficient cost management or profitable operations during this period. There is a consistent decline in margin percentage starting mid-2021, which culminates in negative margins in the last two available quarters of 2022 (-12.67% and -19.11%), correlating with the large losses in operating income.
- Summary of Financial Health and Patterns
- From 2017 to early 2021, the data reflects a company with growing revenue and generally healthy profitability. The operating income and profit margins maintain positive figures, suggesting operational strength. However, in the latter part of 2021 and notably in 2022, the company experienced significant financial distress, evidenced by sharp declines in operating income, negative operating margins, and an abnormal revenue figure, which might indicate restructuring events, extraordinary losses, or changes in accounting or consolidation.
Net Profit Margin
Warner Bros. Discovery Inc., net profit margin calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) available to Warner Bros. Discovery, Inc. | (2,308) | (3,418) | 456) | 38) | 156) | 672) | 140) | 271) | 300) | 271) | 377) | 476) | 262) | 947) | 384) | 269) | 117) | 216) | (8) | (1,144) | 218) | 374) | 215) | |||||||
| 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) | 1,864) | 1,651) | 1,745) | 1,613) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | -20.13% | -14.32% | 10.53% | 8.25% | 10.42% | 12.24% | 9.11% | 11.42% | 13.36% | 12.86% | 18.54% | 18.57% | 16.81% | 15.62% | 9.00% | 5.63% | -8.52% | -8.28% | -7.40% | -4.90% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Alphabet Inc. | 23.75% | 25.89% | 27.57% | 29.51% | 29.52% | 28.57% | 26.11% | 22.06% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Comcast Corp. | 4.46% | 11.54% | 11.96% | 12.17% | 12.73% | 11.44% | 11.25% | 10.17% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Meta Platforms Inc. | 24.41% | 28.16% | 31.20% | 33.38% | 35.88% | 37.18% | 35.74% | 33.90% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Netflix Inc. | 16.03% | 16.42% | 16.47% | 17.23% | 17.64% | 15.92% | 14.24% | 11.05% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walt Disney Co. | 3.87% | 3.46% | 4.22% | 2.96% | 1.77% | -7.73% | -8.15% | -4.38% | -1.58% | 6.88% | 13.80% | 15.89% | — | — | — | — | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Net profit margin = 100
× (Net income (loss) available to Warner Bros. Discovery, Inc.Q3 2022
+ Net income (loss) available to Warner Bros. Discovery, Inc.Q2 2022
+ Net income (loss) available to Warner Bros. Discovery, Inc.Q1 2022
+ Net income (loss) available to Warner Bros. Discovery, Inc.Q4 2021)
÷ (RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021)
= 100 × (-2,308 + -3,418 + 456 + 38)
÷ (9,823 + 9,827 + 3,159 + 3,187)
= -20.13%
2 Click competitor name to see calculations.
- Net Income Trend Analysis
- The net income exhibited significant volatility over the periods analyzed. Starting from a positive $215 million in March 2017, it reached a peak of $947 million in June 2019, indicating strong profitability improvements during this timeframe. However, a sharp decline ensued, with net income turning negative by December 2017 (a loss of $1,144 million), recovering to positive values through 2020 and early 2021. A notable downturn occurred again in the second and third quarters of 2022, with losses deepening to $3,418 million and $2,308 million, respectively, reflecting substantial financial challenges.
- Revenue Growth and Stability
- Revenues showed a generally upward trajectory from $1,613 million in March 2017 to a peak exceeding $3,000 million by the end of 2021. This trend indicates consistent growth and expansion. However, the last two reported quarters in 2022 show a significant decline to roughly $9,800 million (likely an aggregated or adjusted value), suggesting either a change in reporting or a sharp decrease in revenue generation that warrants further investigation.
- Net Profit Margin Patterns
- Net profit margins fluctuated noticeably, with negative margins in late 2017 and through much of 2018, reflecting periods of operational losses relative to revenue. The margin improved markedly starting in late 2018, peaking at over 18% in mid-2019 and early 2020, signifying enhanced profitability and operational efficiency. Margins declined thereafter but remained positive until 2021. The margins turned negative again in 2022, consistent with the substantial net losses observed in the same periods.
- Overall Observations
- The data reveals a cycle of strong growth and profitability disrupted by significant downturns in net income and profit margins, particularly in late 2017 and again in 2022. While revenue growth was generally steady until 2021, recent data indicates potential financial distress or substantial one-time impacts affecting profitability. This volatility suggests a need for close monitoring of cost structures, revenue streams, and external factors influencing performance.
Return on Equity (ROE)
Warner Bros. Discovery Inc., ROE calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) available to Warner Bros. Discovery, Inc. | (2,308) | (3,418) | 456) | 38) | 156) | 672) | 140) | 271) | 300) | 271) | 377) | 476) | 262) | 947) | 384) | 269) | 117) | 216) | (8) | (1,144) | 218) | 374) | 215) | |||||||
| 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) | 4,610) | 5,740) | 5,526) | 5,335) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | -10.78% | -5.39% | 11.05% | 8.67% | 10.67% | 11.99% | 9.08% | 11.65% | 14.12% | 14.05% | 21.77% | 20.92% | 19.56% | 17.85% | 11.32% | 7.08% | -10.09% | -9.05% | -7.10% | -7.31% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| Alphabet Inc. | 26.41% | 28.20% | 29.35% | 30.22% | 28.87% | 26.49% | 22.33% | 18.09% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Comcast Corp. | 6.73% | 15.35% | 15.18% | 14.73% | 15.12% | 13.13% | 12.66% | 11.66% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Meta Platforms Inc. | 23.23% | 26.74% | 30.30% | 31.53% | 30.22% | 28.18% | 25.24% | 22.72% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Netflix Inc. | 24.57% | 26.71% | 28.54% | 32.28% | 32.98% | 31.68% | 29.18% | 24.96% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walt Disney Co. | 3.40% | 2.92% | 3.43% | 2.25% | 1.30% | -5.28% | -5.89% | -3.43% | -1.28% | 5.95% | 11.56% | 12.44% | — | — | — | — | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
ROE = 100
× (Net income (loss) available to Warner Bros. Discovery, Inc.Q3 2022
+ Net income (loss) available to Warner Bros. Discovery, Inc.Q2 2022
+ Net income (loss) available to Warner Bros. Discovery, Inc.Q1 2022
+ Net income (loss) available to Warner Bros. Discovery, Inc.Q4 2021)
÷ Total Warner Bros. Discovery, Inc. stockholders’ equity
= 100 × (-2,308 + -3,418 + 456 + 38)
÷ 48,517 = -10.78%
2 Click competitor name to see calculations.
The financial data exhibits notable variability in net income, stockholders' equity, and return on equity (ROE) over the reported quarters.
- Net Income (Loss)
- Net income shows substantial fluctuations with both positive and negative values throughout the periods. Initial quarters from March 2017 to September 2017 display positive net income ranging from 215 million USD to 374 million USD, followed by a significant loss of -1,144 million USD in December 2017. Subsequent quarters reflect recovery phases with intermittent profits, peaking at 947 million USD in June 2019. However, the trailing quarters from March 2022 onward show a return to sizeable losses, reaching extreme negative values of -3,418 million USD and -2,308 million USD, indicating significant operational or one-off challenges during this later period.
- Total Stockholders' Equity
- The stockholders' equity demonstrates a general increasing trend from 5,335 million USD in March 2017 to 11,969 million USD in September 2022, with some sporadic volatility. Particularly, equity rose steadily through 2017 to 2019, nearing approximately 10,000 million USD. However, the equity figures for the final two periods in 2022 show an anomalous and substantial increase to 51,383 million USD and 48,517 million USD respectively, which may reflect significant capital transactions, asset revaluations, or other balance sheet changes not indicated explicitly in the data.
- Return on Equity (ROE)
- ROE values are missing for some early periods but reveal a pattern of negative returns in late 2017 and early 2018, with figures ranging approximately from -7% to -10%. This is followed by a recovery phase starting in March 2019, with ROE improving sharply and peaking above 20% in December 2019 and March 2020, indicative of strong profitability relative to equity during this interval. Subsequently, ROE decreases but remains positive through to December 2021, ranging between 8.7% and 14.1%. The last two quarters recorded negative ROE values, -5.39% and -10.78%, aligning with the notable net income losses and the marked equity adjustments in 2022, signaling a return to reduced profitability or losses relative to equity.
In summary, the data reveals cyclical profitability with periods of strong earnings followed by sharp declines and losses, significant growth in equity with unusual sizable changes in later periods, and a return on equity that fluctuates accordingly, emphasizing phases of both financial strength and distress within the reported timeframe.
Return on Assets (ROA)
Warner Bros. Discovery Inc., ROA 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) available to Warner Bros. Discovery, Inc. | (2,308) | (3,418) | 456) | 38) | 156) | 672) | 140) | 271) | 300) | 271) | 377) | 476) | 262) | 947) | 384) | 269) | 117) | 216) | (8) | (1,144) | 218) | 374) | 215) | |||||||
| 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) | 22,555) | 23,143) | 16,149) | 15,862) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | -3.85% | -1.95% | 3.91% | 2.92% | 3.61% | 4.00% | 2.92% | 3.58% | 4.26% | 4.19% | 6.18% | 6.13% | 5.67% | 5.07% | 3.04% | 1.82% | -2.49% | -2.14% | -1.62% | -1.49% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| Alphabet Inc. | 18.70% | 20.28% | 20.87% | 21.16% | 20.33% | 18.76% | 15.70% | 12.60% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Comcast Corp. | 2.12% | 5.26% | 5.25% | 5.13% | 5.23% | 4.50% | 4.21% | 3.85% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Meta Platforms Inc. | 16.12% | 19.81% | 22.74% | 23.72% | 23.77% | 22.83% | 20.63% | 18.29% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Netflix Inc. | 10.61% | 10.99% | 11.05% | 11.48% | 11.82% | 10.72% | 9.37% | 7.03% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walt Disney Co. | 1.54% | 1.31% | 1.52% | 0.98% | 0.56% | -2.25% | -2.45% | -1.42% | -0.53% | 2.61% | 5.16% | 5.70% | — | — | — | — | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
ROA = 100
× (Net income (loss) available to Warner Bros. Discovery, Inc.Q3 2022
+ Net income (loss) available to Warner Bros. Discovery, Inc.Q2 2022
+ Net income (loss) available to Warner Bros. Discovery, Inc.Q1 2022
+ Net income (loss) available to Warner Bros. Discovery, Inc.Q4 2021)
÷ Total assets
= 100 × (-2,308 + -3,418 + 456 + 38)
÷ 136,049 = -3.85%
2 Click competitor name to see calculations.
- Net Income (Loss) Trend
- The net income figures demonstrate high volatility over the reported quarters. Initially, the company reported positive net income figures ranging roughly between 215 million and 374 million USD in early 2017. However, from the fourth quarter of 2017 onward, a significant net loss occurred (-1,144 million USD), followed by fluctuating positive and negative results. Notably, during 2019 and early 2020, net income remained generally positive but moderate, ranging from approximately 140 million to 947 million USD. In 2022, there was a sharp decline with substantial losses recorded (-3,418 million and -2,308 million USD), indicating a period of financial challenge or restructuring.
- Total Assets Evolution
- Total assets increased markedly from around 15.9 billion USD in the first quarter of 2017 to a peak over 34 billion USD by 2021. The asset base remained relatively stable around the mid-30 billion USD range through 2018 to early 2022, reflecting sustained asset accumulation or acquisitions. However, there is a notable jump in total assets to 142.2 billion USD in June 2022, immediately followed by a slight decrease to approximately 136 billion USD by September 2022. This sudden increase suggests a major transaction or revaluation affecting the balance sheet during that period.
- Return on Assets (ROA) Analysis
- ROA data shows significant fluctuations over the periods. Initially, in late 2017 and early 2018, the company experienced negative ROA, reaching as low as -2.49%. Starting in late 2018 through much of 2019 and 2020, ROA improved considerably, peaking at above 6% in early 2020, which indicates enhanced efficiency in asset utilization during these years. However, from 2021 onward, there was a gradual decline in ROA, with negative values again appearing by mid-2022 (-1.95% and -3.85%), signaling a deteriorating profitability relative to the asset base toward the latter part of the period. This corresponds with the net income losses reported in 2022.
- Summary of Financial Health Indicators
- The combination of volatile net income and fluctuating ROA over the five-year timeframe suggests periods of operational challenges and recovery phases. The asset base expansion until 2021 indicates growth or large-scale investments, but negative returns in 2022 imply difficulty in efficiently utilizing these assets to generate profit. The sharp asset increase in mid-2022 may be related to corporate restructuring or mergers, but it appears not yet to have translated into improved profitability.