Warner Bros Discovery Inc (WBD)

Return on assets (ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	-11,294,000	-11,355,000	-11,769,000	-3,023,000	-3,117,000	-4,796,000	-6,687,000	-8,865,000	-7,330,000	-5,073,000	-2,609,000	1,481,000	1,197,000	1,290,000	1,434,000	1,033,000	1,219,000	1,424,000	1,386,000	2,062,000
Total assets	US$ in thousands	104,560,000	106,333,000	108,029,000	119,819,000	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
ROA		-10.80%	-10.68%	-10.89%	-2.52%	-2.54%	-3.88%	-5.20%	-6.79%	-5.47%	-3.73%	-1.83%	4.38%	3.48%	3.76%	4.15%	3.07%	3.58%	4.26%	4.19%	6.18%

December 31, 2024 calculation

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

Warner Bros Discovery Inc's return on assets (ROA) has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The ROA started at a relatively healthy level of 6.18% in March 2020 and showed a gradual decline to 3.07% by March 2021. After this period, there was some recovery with ROA reaching 4.38% by March 2022.

However, from June 2022 onward, the ROA turned negative and experienced a downward trend, reaching its lowest point of -10.89% by June 30, 2024, and remaining at a similarly low level around -10.80% by December 31, 2024.

This negative trend in ROA suggests that Warner Bros Discovery Inc may be facing challenges in generating profits from its assets. A negative ROA indicates that the company's assets are not generating sufficient earnings to cover its expenses, which could be a cause for concern for investors and stakeholders. It may be important for the company to assess and address the factors contributing to the decline in ROA to improve its financial performance and overall profitability in the future.