Warner Bros Discovery Inc (WBD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -10.44% | -21.32% | 19.84% | 26.81% | 30.67% |
| Operating profit margin | -3.98% | -21.16% | 15.73% | 22.92% | 26.14% |
| Pretax margin | -10.05% | -25.93% | 9.71% | 14.51% | 18.68% |
| Net profit margin | -8.04% | -21.16% | 7.87% | 11.11% | 17.98% |
Warner Bros. Discovery Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has gradually decreased from 65.73% in 2019 to 40.65% in 2023, indicating a decline in the company's ability to generate profits after accounting for the cost of goods sold.
The operating profit margin has also experienced significant volatility, dropping from 28.61% in 2019 to -2.14% in 2023. This suggests operational challenges or inefficiencies that have impacted the company's ability to generate profits from its core business activities.
The pretax margin reflects the company's profitability before accounting for taxes and interest expenses. Warner Bros. Discovery Inc's pretax margin has fluctuated over the years, with a noticeable decline from 20.59% in 2019 to -9.58% in 2023, indicating difficulties in maintaining profitability at the operating level.
The net profit margin, which represents the company's bottom-line profitability, has also shown a declining trend, decreasing from 16.56% in 2019 to -7.57% in 2023. This indicates that the company's ability to convert revenue into net income has been weakening over the years.
Overall, Warner Bros. Discovery Inc's profitability ratios demonstrate a challenging operating environment, as evidenced by the declining trends in gross profit margin, operating profit margin, pretax margin, and net profit margin over the past five years. This suggests that the company may be facing operational inefficiencies or other challenges impacting its profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.26% | -5.50% | 5.84% | 7.38% | 8.92% |
| Return on assets (ROA) | -2.55% | -5.50% | 2.92% | 3.58% | 6.13% |
| Return on total capital | -1.97% | -8.53% | 7.21% | 8.77% | 11.44% |
| Return on equity (ROE) | -6.91% | -15.65% | 8.67% | 11.65% | 20.92% |
Warner Bros. Discovery Inc's profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated, with negative percentages in recent years. In 2023, the Operating ROA was -0.72%, indicating that the company's operating income generated a negative return relative to its assets.
2. Return on assets (ROA) also shows a declining trend, with negative percentages in the last two years. In 2023, the ROA was -2.55%, suggesting that the company's overall profitability from all activities relative to its total assets declined significantly.
3. Return on total capital reflects a negative performance in recent years, reaching -1.00% in 2023. This ratio indicates the company's ability to generate returns from both its equity and debt capital, which has been decreasing over time.
4. Return on equity (ROE) has shown inconsistency, with negative figures in the last two years. In 2023, the ROE was -6.91%, indicating a decrease in the company's ability to generate profits from shareholders' equity.
Overall, Warner Bros. Discovery Inc's profitability ratios suggest a challenging financial performance in recent years, with decreasing returns on assets, total capital, and equity. The company may need to implement strategies to improve its efficiency and profitability to enhance shareholder value.