Warner Bros Discovery Inc (WBD)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Gross profit (ttm)	US$ in thousands	16,351,000	10,567,000	10,795,000	12,750,000	14,768,000	16,461,000	15,987,000	15,467,000	13,375,000	11,441,000	8,866,000	7,671,000	7,571,000	7,208,000	7,145,000	6,869,000	6,811,000	6,891,000	7,097,000	7,313,000
Revenue (ttm)	US$ in thousands	39,321,000	39,577,000	39,933,000	40,580,000	41,326,000	42,045,000	41,889,000	41,358,000	33,817,000	25,996,000	19,323,000	12,558,000	12,191,000	11,890,000	11,301,000	10,780,000	10,671,000	10,659,000	10,776,000	11,120,000
Gross profit margin		41.58%	26.70%	27.03%	31.42%	35.74%	39.15%	38.17%	37.40%	39.55%	44.01%	45.88%	61.08%	62.10%	60.62%	63.22%	63.72%	63.83%	64.65%	65.86%	65.76%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $16,351,000K ÷ $39,321,000K
= 41.58%

Warner Bros Discovery Inc's gross profit margin has shown fluctuations over the periods under consideration. The trend indicates a gradual decrease in gross profit margin, starting at 65.76% in March 2020 and reaching 41.58% by December 2024. The decrease in gross profit margin may reflect various factors such as changes in pricing strategies, cost structures, or competitive pressures within the industry.

The decline in the gross profit margin from the initial levels may raise concerns about the company's ability to maintain profitability and manage costs effectively. This trend suggests a potential impact on the company's overall financial performance and margins.

It is essential for Warner Bros Discovery Inc to closely monitor and analyze the drivers behind the declining gross profit margin to make informed decisions and implement strategies to improve profitability and maintain a sustainable business model. Additionally, the company may need to explore opportunities to enhance operational efficiencies and optimize its cost structure to mitigate the impact of decreasing gross profit margins on its financial performance.