Warner Bros Discovery Inc (WBD)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -1,548,000 | -7,370,000 | 2,012,000 | 2,515,000 | 3,009,000 |
| Total assets | US$ in thousands | 122,757,000 | 134,001,000 | 34,427,000 | 34,087,000 | 33,735,000 |
| Operating ROA | -1.26% | -5.50% | 5.84% | 7.38% | 8.92% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-1,548,000K ÷ $122,757,000K
= -1.26%
Warner Bros. Discovery Inc's operating return on assets (operating ROA) has experienced a declining trend over the past five years. The company's operating ROA decreased from 9.45% in 2019 to 7.70% in 2020, further dropping to 5.68% in 2021. However, the most significant decline was observed in 2022 and 2023, with operating ROA plummeting to -2.73% and -0.72%, respectively.
This downward trend in operating ROA indicates that Warner Bros. Discovery Inc's ability to generate profits from its assets has weakened over the years. A negative operating ROA in 2022 and 2023 suggests that the company's operating income is insufficient to cover its operating assets, resulting in a loss on operations.
The deteriorating operating ROA may raise concerns about the company's operational efficiency, asset utilization, and profitability. Management may need to closely evaluate and address the factors contributing to this decline to improve financial performance and enhance shareholder value.
Peer comparison
Dec 31, 2023