Warner Bros Discovery Inc (WBD)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	34,037,000	45,226,000	47,095,000	11,599,000	10,464,000
ROE		-33.18%	-6.91%	-15.49%	8.67%	11.65%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-11,294,000K ÷ $34,037,000K
= -33.18%

Warner Bros Discovery Inc's return on equity (ROE) has shown a declining trend over the years based on the provided data. In December 2020, the ROE stood at 11.65%, indicating a decent return on shareholders' equity. However, by December 2024, the ROE had significantly decreased to -33.18%, reflecting a negative return on equity, which is concerning.

The decreasing trend in ROE may suggest that the company's profitability and/or efficiency in generating returns from shareholders' equity have deteriorated over the years. A negative ROE, as seen in the later years, implies that the company's net income is insufficient to cover the shareholders' equity, potentially indicating financial distress or operational inefficiencies.

It is important for Warner Bros Discovery Inc to analyze the factors contributing to the decline in ROE and take necessary actions to improve profitability, efficiency, and shareholder value in order to reverse this negative trend and enhance long-term financial sustainability.