Warner Bros Discovery Inc (WBD)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -13,405,000 | -1,601,000 | -7,152,000 | 2,073,000 | 2,420,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 34,037,000 | 45,226,000 | 47,095,000 | 11,599,000 | 10,464,000 |
| Return on total capital | -39.38% | -3.54% | -15.19% | 17.87% | 23.13% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-13,405,000K ÷ ($—K + $34,037,000K)
= -39.38%
Warner Bros Discovery Inc's return on total capital has exhibited significant fluctuations over the years based on the provided data.
- In December 2020, the return on total capital was 23.13%, indicating a fairly strong performance in utilizing its total capital to generate profits.
- By December 2021, the return decreased to 17.87%, although still relatively healthy.
- However, in December 2022, the return on total capital turned negative, reaching -15.19%, suggesting that the company may have faced challenges in efficiently utilizing its capital to generate returns.
- The negative trend continued in December 2023 with a return of -3.54%, indicating ongoing difficulties in capital efficiency.
- By December 2024, the return on total capital further declined to -39.38%, signifying a significant drop in the company's ability to generate profits relative to its total capital employed.
Overall, the negative trend in return on total capital from 2022 onwards suggests that Warner Bros Discovery Inc may be facing operational or financial challenges impacting its capital efficiency and profitability. Further analysis and investigation would be needed to identify the root causes and potential strategies for improvement.
Peer comparison
Dec 31, 2024