Warner Bros Discovery Inc (WBD)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	-1,548,000	-3,260,000	-5,547,000	-8,280,000	-7,370,000	-4,968,000	-2,449,000	1,969,000	2,012,000	1,992,000	2,194,000	2,132,000	2,515,000	2,732,000	2,820,000	3,014,000	3,009,000	3,015,000	2,765,000	2,504,000
Revenue (ttm)	US$ in thousands	38,893,000	43,065,000	42,909,000	42,378,000	34,837,000	26,592,000	19,919,000	13,154,000	12,787,000	12,193,000	11,604,000	11,083,000	10,974,000	10,659,000	10,776,000	11,120,000	11,144,000	11,079,000	10,993,000	10,953,000
Operating profit margin		-3.98%	-7.57%	-12.93%	-19.54%	-21.16%	-18.68%	-12.29%	14.97%	15.73%	16.34%	18.91%	19.24%	22.92%	25.63%	26.17%	27.10%	27.00%	27.21%	25.15%	22.86%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-1,548,000K ÷ $38,893,000K
= -3.98%

Warner Bros. Discovery Inc's operating profit margin has shown variability over the past eight quarters. The company experienced negative operating profit margins in the most recent quarters of Q4 2023 (-2.14%) and Q3 2023 (-3.61%), which improved from the significantly lower levels seen in Q2 2023 (-6.20%) and Q1 2023 (-10.80%). Comparatively, the operating profit margin was also negative in Q4 2022 (-10.81%) and Q3 2022 (-9.58%), indicating a consistent struggle in generating profits from operations during those periods.

However, there was an anomaly in Q1 2022 where Warner Bros. Discovery Inc managed to achieve a positive operating profit margin of 15.07%, which was notably higher than the other quarters. This quarter stands out as an exceptional period of profitability for the company, potentially attributed to favorable operating conditions or one-time events positively impacting the bottom line.

Overall, the downward trend in operating profit margins from Q1 2022 to Q1 2023 indicates a deterioration in the company's ability to generate profits from its core operations during this period. Management should focus on improving operational efficiency and cost management strategies to enhance the company's financial performance going forward.