Warner Bros Discovery Inc (WBD)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -10,032,000 | -1,548,000 | -3,582,000 | 2,012,000 | 2,515,000 |
| Total assets | US$ in thousands | 104,560,000 | 122,757,000 | 134,001,000 | 34,427,000 | 34,087,000 |
| Operating ROA | -9.59% | -1.26% | -2.67% | 5.84% | 7.38% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-10,032,000K ÷ $104,560,000K
= -9.59%
Warner Bros Discovery Inc's operating return on assets (ROA) has shown a declining trend over the years, starting at 7.38% on December 31, 2020, and decreasing to 5.84% by December 31, 2021. However, the trend took a negative turn in the subsequent years, with the operating ROA dropping to -2.67% by December 31, 2022, and further decreasing to -1.26% by December 31, 2023. The decline continued with a significant decrease to -9.59% by December 31, 2024.
This downward trajectory in operating ROA indicates that Warner Bros Discovery Inc's ability to generate profits from its operations relative to its total assets has deteriorated. It is essential for the company to scrutinize its operational efficiency, asset utilization, and profitability drivers to reverse this negative trend and improve its financial performance.
Peer comparison
Dec 31, 2024