Warner Bros Discovery Inc (WBD)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 122,757,000 | 123,749,000 | 128,618,000 | 130,584,000 | 134,001,000 | 136,049,000 | 142,240,000 | 33,799,000 | 34,427,000 | 34,318,000 | 34,572,000 | 33,625,000 | 34,087,000 | 33,438,000 | 33,089,000 | 33,390,000 | 33,735,000 | 32,825,000 | 33,845,000 | 32,444,000 |
| Operating ROA | -1.26% | -2.63% | -4.31% | -6.34% | -5.50% | -3.65% | -1.72% | 5.83% | 5.84% | 5.80% | 6.35% | 6.34% | 7.38% | 8.17% | 8.52% | 9.03% | 8.92% | 9.19% | 8.17% | 7.72% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-1,548,000K ÷ $122,757,000K
= -1.26%
Warner Bros. Discovery Inc's operating return on assets (operating ROA) indicates how efficiently the company is generating operating profits from its assets. The trend of the operating ROA over the past eight quarters shows fluctuations.
In Q1 2022, Warner Bros. Discovery Inc had a strong operating ROA of 5.60%, indicating that the company was able to generate significant operating earnings relative to its assets during that quarter. However, the following quarters saw a decline in performance, with negative operating ROA figures ranging from -1.03% to -3.42%. These negative values suggest that the company's operating profits were insufficient to cover the costs associated with its assets during those periods.
The data indicates a downward trend in the operating ROA from positive territory in Q1 2022 to negative values in subsequent quarters. This trend may raise concerns about the company's operational efficiency and profitability in utilizing its assets effectively to generate operating income.
Warner Bros. Discovery Inc should closely analyze the factors contributing to the decline in its operating ROA and consider implementing strategies to improve operational efficiency and asset utilization to enhance profitability in the future.
Peer comparison
Dec 31, 2023