Warner Bros Discovery Inc (WBD)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -3,910,000 | -9,034,000 | 1,242,000 | 1,592,000 | 2,150,000 |
| Revenue | US$ in thousands | 38,893,000 | 34,837,000 | 12,787,000 | 10,974,000 | 11,510,000 |
| Pretax margin | -10.05% | -25.93% | 9.71% | 14.51% | 18.68% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-3,910,000K ÷ $38,893,000K
= -10.05%
Warner Bros. Discovery Inc's pretax margin has shown a notable downward trend over the past five years, with the most recent figure standing at -9.58% as of December 31, 2023. This decline indicates a decrease in the company's ability to generate profit before tax relative to its revenue.
The significant drop from 11.75% in 2021 to -26.50% in 2022 is particularly concerning, suggesting a substantial decrease in profitability within a single year. While there was a slight recovery in 2022 to 16.19%, the trend reversed again in 2023.
The decline in pretax margin could be attributed to various factors such as rising operating expenses, declining revenue, or one-time charges impacting the company's earnings. Warner Bros. Discovery Inc should closely examine its cost structure and revenue streams to identify areas for improvement in order to enhance profitability in the future.
Peer comparison
Dec 31, 2023