Warner Bros Discovery Inc (WBD)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-11,294,000	-3,126,000	-7,297,000	1,006,000	1,219,000
Total assets	US$ in thousands	104,560,000	122,757,000	134,001,000	34,427,000	34,087,000
ROA		-10.80%	-2.55%	-5.45%	2.92%	3.58%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-11,294,000K ÷ $104,560,000K
= -10.80%

Warner Bros Discovery Inc's return on assets (ROA) has shown a declining trend over the past five years. The ROA decreased from 3.58% as of December 31, 2020, to 2.92% as of December 31, 2021. However, there was a significant drop in ROA to -5.45% by December 31, 2022. This negative trend continued with ROA further decreasing to -2.55% as of December 31, 2023. The most recent data as of December 31, 2024, indicates a sharp decline in ROA to -10.80%.

The negative ROA figures in the latter years suggest that Warner Bros Discovery Inc's assets are not generating sufficient earnings to cover its operating costs and investments. This downward trend in ROA raises concerns about the company's profitability and efficiency in utilizing its assets effectively to generate returns for its stakeholders. It may indicate potential financial challenges or operational inefficiencies that need to be addressed to improve the company's financial performance.