Warner Bros Discovery Inc (WBD)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 38,893,000 34,837,000 12,787,000 10,974,000 11,510,000
Total current assets US$ in thousands 14,218,000 13,999,000 7,264,000 6,130,000 5,217,000
Total current liabilities US$ in thousands 15,332,000 15,017,000 3,459,000 3,082,000 3,239,000
Working capital turnover 3.36 3.60 5.82

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $38,893,000K ÷ ($14,218,000K – $15,332,000K)
= —

The working capital turnover ratio for Warner Bros. Discovery Inc has shown a decreasing trend over the past five years. In 2019, the ratio was 5.63, indicating that the company generated $5.63 in revenue for every dollar of working capital. However, this ratio declined to 3.50 in 2020 and further to 3.20 in 2021.

A decreasing trend in working capital turnover may suggest that the company is becoming less efficient in utilizing its working capital to generate revenue. It could indicate potential inefficiencies in managing the company's current assets and liabilities.

It is important for Warner Bros. Discovery Inc to closely monitor and improve its working capital turnover ratio to ensure optimal utilization of working capital resources and maintain healthy liquidity levels. An in-depth analysis of the company's operating cycle and management of working capital components would be beneficial in addressing any underlying issues leading to the decline in the working capital turnover ratio.


Peer comparison

Dec 31, 2023


See also:

Warner Bros Discovery Inc Working Capital Turnover