Warner Bros Discovery Inc (WBD)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	—	—	10,250.00	8.28	17.62
Receivables turnover	6.43	5.46	5.23	4.33	4.37
Payables turnover	34.09	29.07	24.88	20.23	17.24
Working capital turnover	—	—	3.36	3.60	5.82

Inventory turnover is not provided in the table, which indicates that there is no data available for this ratio.

Receivables turnover for Warner Bros. Discovery Inc has shown an improving trend over the past five years, from 4.23 in 2019 to 5.65 in 2023. This suggests that the company is collecting its outstanding receivables more efficiently, indicating a decrease in the average collection period for its accounts receivable.

On the other hand, payables turnover has also increased steadily from 8.25 in 2019 to 19.47 in 2023. This indicates that the company is taking longer to pay its suppliers, potentially benefiting from more favorable credit terms or managing its cash flow more effectively.

Working capital turnover, which is not available for 2020 and earlier years, shows a decreasing trend from 5.63 in 2019 to 3.50 in 2021 for Warner Bros. Discovery Inc. This may suggest that the company is generating less revenue for each dollar of working capital employed, indicating a potential inefficiency in capital utilization.

Overall, the data shows positive trends in receivables turnover and payables turnover, while working capital turnover fluctuates. This analysis suggests that Warner Bros. Discovery Inc has been improving its efficiency in managing receivables and payables, but further analysis is needed to understand the impact on the company's overall operational performance.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	—	0.04	44.08	20.72
Days of sales outstanding (DSO)	days	56.75	66.85	69.82	84.38	83.50
Number of days of payables	days	10.71	12.56	14.67	18.04	21.18

Warner Bros. Discovery Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of inventory on hand (DOH): Unfortunately, specific data for this ratio is not available in the table. The DOH ratio measures the average number of days it takes for the company to sell its inventory. A lower DOH value is generally preferred as it indicates that inventory turnover is high, and inventory is being managed efficiently.

2. Days of sales outstanding (DSO): Warner Bros. Discovery Inc's DSO has shown fluctuations over the past five years, ranging from a low of 64.59 days to a high of 86.78 days. DSO reflects the average number of days it takes for the company to collect payments from its customers. A declining trend in DSO indicates that the company is collecting receivables more quickly, which is a positive sign of efficient accounts receivable management.

3. Number of days of payables: The days of payables have reduced gradually over the last five years, from 44.25 days to 18.75 days. This ratio measures the average number of days it takes for the company to pay its suppliers. A lower number signifies that the company is paying its suppliers more promptly, potentially benefiting from discounts or maintaining good relationships with suppliers.

Overall, while specific data for the DOH ratio is missing, the trend in DSO and the number of days of payables suggest that Warner Bros. Discovery Inc has been improving its management of receivables and payables over the years. It is essential for the company to continue monitoring and optimizing these activity ratios to enhance operational efficiency and maintain strong relationships with both customers and suppliers.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	6.53	6.57	9.57	9.10	12.10
Total asset turnover	0.32	0.26	0.37	0.32	0.34

Warner Bros. Discovery Inc's fixed asset turnover has been fluctuating over the last five years, ranging from a low of 6.38 in 2022 to a high of 11.72 in 2019. This ratio indicates the company's ability to generate revenue from its fixed assets, with higher values suggesting efficient utilization of these assets to generate sales.

On the other hand, the total asset turnover ratio has also been varying, with values ranging from 0.25 in 2022 to 0.35 in 2021. This ratio reflects the company's overall efficiency in using all its assets to generate sales. A higher total asset turnover implies that the company is generating more revenue for each dollar invested in assets.

In general, Warner Bros. Discovery Inc's fixed asset turnover has been higher and more consistent compared to its total asset turnover. This could indicate that the company is more efficient in utilizing its fixed assets to generate revenue than its total assets overall. However, it is important to consider other factors and ratios in conjunction with these numbers to get a comprehensive understanding of the company's long-term activity performance.