Warner Bros Discovery Inc (WBD)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -3,126,000 | -7,371,000 | 1,006,000 | 1,219,000 | 2,069,000 |
| Total stockholders’ equity | US$ in thousands | 45,226,000 | 47,095,000 | 11,599,000 | 10,464,000 | 9,891,000 |
| ROE | -6.91% | -15.65% | 8.67% | 11.65% | 20.92% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-3,126,000K ÷ $45,226,000K
= -6.91%
Warner Bros. Discovery Inc's return on equity (ROE) has been fluctuating in recent years, as evidenced by the data provided. The ROE for the company was -6.91% as of December 31, 2023, reflecting a decline from the previous year's ROE of -15.76% in 2022. This indicates that the company's profitability in relation to shareholders' equity worsened during this period.
The negative ROE values in 2023 and 2022 suggest that Warner Bros. Discovery Inc may be experiencing challenges in generating profits from its equity base. In contrast, the positive ROE values in 2021, 2020, and 2019 imply that the company was able to generate profits more efficiently in those years relative to shareholders' equity.
Overall, the decreasing trend in ROE from 2019 to 2023 indicates a potential decline in the company's profitability and efficiency in utilizing its equity to generate earnings for shareholders. It may be important for the company to assess its operational performance and financial strategies to improve its ROE in the future.
Peer comparison
Dec 31, 2023