Warner Bros Discovery Inc (WBD)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	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
Inventory turnover	—	—	—	—	—	91.84	68.96	9.09	3,749.00	10.75	14.26	12.27	8.28	10.54	17.50	15.32	17.62	10.27	8.78	13.08
Receivables turnover	6.43	6.82	6.34	6.20	5.46	3.99	2.83	5.42	5.23	4.95	4.37	4.48	4.33	4.36	4.36	4.34	4.23	4.11	3.85	4.17
Payables turnover	34.09	46.13	33.76	46.60	29.07	8.92	6.86	7.71	9.10	—	—	—	20.23	19.67	21.36	18.93	17.24	9.81	11.53	12.12
Working capital turnover	—	—	—	—	—	—	19.66	3.64	3.36	3.67	3.67	4.07	3.60	3.92	5.03	6.35	5.63	7.51	10.39	19.91

Activity ratios provide insights into how effectively a company is managing its assets and liabilities to generate sales revenue.

- Receivables turnover indicates that Warner Bros. Discovery Inc has been efficiently collecting its accounts receivable, with the turnover increasing steadily quarter over quarter. This means the company is converting its credit sales into cash quickly.

- Payables turnover shows that the company is managing its accounts payable effectively, with a high turnover rate showing it is paying off its vendors quickly. The fluctuation in payables turnover may indicate changes in the company's payment policies or supplier relationships.

- Working capital turnover, which was only available for Q2 2022, indicates how efficiently the company is using its working capital to generate sales. A high turnover ratio suggests efficient utilization of working capital to support revenue generation.

Overall, Warner Bros. Discovery Inc seems to be effectively managing its working capital and trade receivables, while also maintaining good relationships with its suppliers based on the payables turnover ratio. The lack of data for inventory turnover limits further analysis of the company's performance in managing its inventory.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	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
Days of inventory on hand (DOH)	days	—	—	—	—	—	3.97	5.29	40.17	0.10	33.97	25.60	29.76	44.08	34.62	20.86	23.82	20.72	35.54	41.58	27.91
Days of sales outstanding (DSO)	days	56.75	53.50	57.59	58.85	66.85	91.54	129.17	67.32	69.82	73.70	83.58	81.54	84.38	83.69	83.76	84.16	86.24	88.79	94.76	87.48
Number of days of payables	days	10.71	7.91	10.81	7.83	12.56	40.92	53.19	47.35	40.11	—	—	—	18.04	18.55	17.09	19.29	21.18	37.20	31.65	30.12

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

1. Days of Inventory on Hand (DOH): Unfortunately, the data for DOH is not available across the quarters provided. Ideally, a lower DOH indicates better inventory management by the company as it signifies a faster turnover of inventory into sales. Without specific data points, it is challenging to evaluate this aspect of Warner Bros. Discovery Inc's operations.

2. Days of Sales Outstanding (DSO): The DSO for Warner Bros. Discovery Inc has shown some fluctuations over the quarters, ranging from a low of 54.80 days in Q3 2023 to a high of 133.15 days in Q2 2022. A lower DSO implies quicker collection of accounts receivable, which is indicative of efficient credit management and faster conversion of sales into cash. The decreasing trend in DSO from Q2 2022 to Q3 2023 is a positive sign of improved collection practices.

3. Number of Days of Payables: Warner Bros. Discovery Inc's days of payables have varied throughout the periods analyzed, with values ranging from 15.83 days in Q1 2023 to 48.76 days in Q2 2022. A higher number of days of payables suggests the company is taking longer to pay its suppliers, which can be beneficial for working capital management. However, excessively long payment periods may strain supplier relationships. The decreasing trend in payables from Q2 2022 to Q3 2023 indicates a more efficient payment cycle, which could enhance liquidity.

In summary, Warner Bros. Discovery Inc has demonstrated improvements in its collection practices and payment cycles, as evidenced by the decreasing trend in DSO and days of payables. However, the lack of data for Days of Inventory on Hand makes a comprehensive assessment of the company's inventory management efficiency unfeasible.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	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
Fixed asset turnover	6.53	7.41	7.84	7.96	6.57	5.43	3.74	9.91	9.57	9.31	9.37	9.32	9.10	9.47	9.90	10.69	11.72	12.94	13.28	13.66
Total asset turnover	0.32	0.35	0.33	0.32	0.26	0.20	0.14	0.39	0.37	0.36	0.34	0.33	0.32	0.32	0.33	0.33	0.33	0.34	0.32	0.34

Warner Bros. Discovery Inc's fixed asset turnover has shown a positive trend over the quarters, indicating the company's ability to generate revenue from its fixed assets efficiently. The ratio increased from 6.38 in Q4 2022 to 7.77 in Q1 2023, suggesting that the company's fixed assets are being utilized more effectively to generate sales.

In contrast, the total asset turnover ratio has remained relatively stable around 0.32-0.34 over the past few quarters. This indicates the company's ability to generate sales from its total assets, including both fixed and current assets.

Overall, the trend in both fixed asset turnover and total asset turnover ratios suggests that Warner Bros. Discovery Inc is effectively managing its assets to generate revenue and maximize shareholder value.