Warner Bros Discovery Inc (WBD)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	34,037,000	35,100,000	34,345,000	44,151,000	45,226,000	44,774,000	45,452,000	46,496,000	47,095,000	48,517,000	51,383,000	11,969,000	11,599,000	11,611,000	11,538,000	10,815,000	10,464,000	10,087,000	9,867,000	9,470,000
ROE		-33.18%	-32.35%	-34.27%	-6.85%	-6.89%	-10.71%	-14.71%	-19.07%	-15.56%	-10.46%	-5.08%	12.37%	10.32%	11.11%	12.43%	9.55%	11.65%	14.12%	14.05%	21.77%

December 31, 2024 calculation

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

Warner Bros Discovery Inc's return on equity (ROE) has exhibited a declining trend over the period from March 31, 2020, to December 31, 2024. The ROE started at a relatively strong level of 21.77% in March 2020 but gradually decreased, reaching negative values in the subsequent quarters.

The ROE steadily declined in the first few quarters, with occasional fluctuations, before plunging to significantly negative levels by June 2024. This negative trend indicates that the company's profitability in relation to shareholders' equity worsened over time, suggesting potential operational challenges or financial difficulties.

The negative ROE figures from June 2022 to December 2024 imply that Warner Bros Discovery Inc is generating net losses or experiencing inefficiencies in the utilization of equity capital. Investors and stakeholders may view this downward trend in ROE as a cause for concern, as it reflects a diminishing ability of the company to generate returns on the capital invested by shareholders.

It is crucial for Warner Bros Discovery Inc to address the factors contributing to the declining ROE and implement strategies to improve profitability and operational efficiency in order to enhance shareholder value and financial performance in the future.