Warner Bros Discovery Inc (WBD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.58% | 40.65% | 39.55% | 62.10% | 63.83% |
| Operating profit margin | -25.51% | -3.75% | -10.59% | 16.50% | 23.57% |
| Pretax margin | -28.96% | -9.35% | -26.50% | 11.75% | 16.19% |
| Net profit margin | -28.72% | -7.57% | -21.58% | 8.25% | 11.42% |
Warner Bros Discovery Inc's profitability ratios show fluctuating trends over the years. The Gross profit margin decreased from 63.83% in 2020 to 41.58% in 2024, indicating a decline in the company's ability to generate profits from its core activities.
The Operating profit margin also experienced a significant decline, from 23.57% in 2020 to -25.51% in 2024, indicating that the company's core operations were not profitable in 2024.
Similarly, the Pretax margin and Net profit margin showed downward trends over the years. The Pretax margin decreased from 16.19% in 2020 to -28.96% in 2024, while the Net profit margin declined from 11.42% in 2020 to -28.72% in 2024.
Overall, Warner Bros Discovery Inc's profitability ratios indicate a decreasing trend in profitability over the years, which may raise concerns about the company's financial performance and ability to generate sustainable profits in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -9.59% | -1.26% | -2.67% | 5.84% | 7.38% |
| Return on assets (ROA) | -10.80% | -2.55% | -5.45% | 2.92% | 3.58% |
| Return on total capital | -39.38% | -3.54% | -15.19% | 17.87% | 23.13% |
| Return on equity (ROE) | -33.18% | -6.91% | -15.49% | 8.67% | 11.65% |
Warner Bros Discovery Inc has shown a declining trend in profitability ratios over the years.
1. Operating ROA decreased from 7.38% in 2020 to -9.59% in 2024, indicating a deterioration in the company's ability to generate operating profits from its assets.
2. ROA also exhibited a decline, dropping from 3.58% in 2020 to -10.80% in 2024. This indicates that the company's overall profitability in relation to its total assets has worsened.
3. Return on total capital saw a significant decrease from 23.13% in 2020 to -39.38% in 2024. This suggests that the company's ability to generate returns from its total capital employed has severely declined.
4. ROE also showed a negative trend, falling from 11.65% in 2020 to -33.18% in 2024, indicating a decreasing ability to generate returns for its equity shareholders.
Overall, the declining profitability ratios of Warner Bros Discovery Inc raise concerns about its financial performance and efficiency in utilizing its assets and capital to generate profits for its shareholders.