Warner Bros Discovery Inc (WBD)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	—	40.94	—	6.92	3.98
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	—	—	—	3.20	3.50

Warner Bros Discovery Inc's activity ratios provide insights into how efficiently the company is managing its resources.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Warner Bros Discovery Inc's inventory turnover has shown an increasing trend over the years, from 3.98 in 2020 to 40.94 in 2023. This indicates that the company is managing its inventory more efficiently, selling its products at a quicker pace.

2. Receivables Turnover: The receivables turnover ratio reflects how effectively a company is collecting its accounts receivables. The data provided shows that Warner Bros Discovery Inc did not report any figures for this ratio in the years mentioned, suggesting that specific data points are not available to evaluate the company's receivables turnover.

3. Payables Turnover: The payables turnover ratio evaluates how efficiently a company pays its suppliers. Similar to receivables turnover, no data is available for Warner Bros Discovery Inc's payables turnover in the specified years, making it challenging to assess the company's payment practices to suppliers.

4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales. Warner Bros Discovery Inc's working capital turnover decreased slightly from 3.50 in 2020 to 3.20 in 2021. However, data for the years 2022 to 2024 is not provided, limiting the ability to track the company's working capital efficiency over time.

Overall, Warner Bros Discovery Inc has shown improvements in its inventory turnover, indicating better inventory management practices. However, the lack of data for receivables turnover, payables turnover, and working capital turnover in certain years limits a comprehensive assessment of the company's overall activity efficiency.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	—	8.91	—	52.77	91.72
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Warner Bros Discovery Inc's Days of Inventory on Hand (DOH) decreased from 91.72 days on December 31, 2020, to 52.77 days on December 31, 2021, and further dropped to 8.91 days by December 31, 2023. This indicates that the company has been able to manage its inventory levels more efficiently, possibly by improving its inventory management practices and reducing excess inventory.

The Days of Sales Outstanding (DSO) data is not provided in the JSON dataset for any of the years, which suggests that Warner Bros Discovery Inc does not have accounts receivable outstanding or tracks this metric in this dataset.

Similarly, the Number of Days of Payables data is also not available for any of the years, indicating that the company's payables turnover information is not included in this dataset.

Overall, the decreasing trend in Days of Inventory on Hand for Warner Bros Discovery Inc signifies improved efficiency in managing its inventory levels, which could lead to reduced carrying costs and potentially improved cash flows.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	3.98	8.13	6.96
Total asset turnover	0.38	0.34	0.25	0.35	0.31

Warner Bros Discovery Inc's fixed asset turnover has shown fluctuating trends over the years. In 2020, the company's fixed asset turnover was 6.96, indicating that it generated $6.96 in revenue for every $1 invested in fixed assets. This ratio improved in 2021 to 8.13, suggesting more efficient utilization of fixed assets. However, in 2022, the fixed asset turnover decreased to 3.98, which may indicate a decline in the efficiency of generating revenue from fixed assets. The data for 2023 and 2024 is not available for analysis.

In terms of total asset turnover, Warner Bros Discovery Inc's performance has been relatively stable. The total asset turnover ratio increased from 0.31 in 2020 to 0.35 in 2021, indicating improved efficiency in generating revenue from total assets. However, in 2022, the total asset turnover declined to 0.25, which may suggest a decrease in the company's ability to generate sales from its total assets. The ratio improved in 2023 to 0.34 and further increased to 0.38 in 2024, showing a potential recovery in the utilization of total assets to generate revenue.

Overall, it is important for Warner Bros Discovery Inc to closely monitor its fixed asset turnover and total asset turnover ratios to ensure efficient utilization of assets and maximize revenue generation in the long term. A consistent focus on improving these ratios can lead to enhanced financial performance and shareholder value.