Warner Bros Discovery Inc (WBD)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -11,390,000 | -11,612,000 | -10,892,000 | -1,240,000 | -1,602,000 | -3,492,000 | -5,859,000 | -8,701,000 | -7,230,000 | -4,968,000 | -2,298,000 | 2,276,000 | 1,875,000 | 2,170,000 | 2,309,000 | 1,455,000 | 1,054,000 | 1,210,000 | 642,000 | 1,552,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | -33.46% | -33.08% | -31.71% | -2.81% | -3.54% | -7.80% | -12.89% | -18.71% | -15.35% | -10.24% | -4.47% | 19.02% | 16.17% | 18.69% | 20.01% | 13.45% | 10.07% | 12.00% | 6.51% | 16.39% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-11,390,000K ÷ ($—K + $34,037,000K)
= -33.46%
Warner Bros Discovery Inc's return on total capital has displayed significant fluctuations over the period from March 31, 2020, to December 31, 2024.
The return on total capital started at 16.39% in March 2020, indicating a healthy return on the company's total invested capital. However, by June 2020, this ratio dropped to 6.51%, signaling a decrease in the company's ability to generate returns on its total capital.
Subsequently, there was an improvement as the return on total capital increased to 12.00% in September 2020 and then to 10.07% by December 2020. The ratio peaked at 20.01% in June 2021, reflecting a period of strong performance and efficient capital utilization.
However, starting from September 2021, there was a declining trend in the return on total capital. The ratio decreased to 16.17% in December 2021 and continued on a downward trajectory in the following quarters, reaching negative territory by June 2022.
The negative trend persisted throughout 2022 and 2023, with the return on total capital ranging from -18.71% in March 2023 to -33.46% in December 2024. These negative values suggest that Warner Bros Discovery Inc's capital efficiency deteriorated significantly, leading to a situation where the company's total capital investment was not generating positive returns.
Overall, the analysis of the return on total capital indicates a mixed performance for Warner Bros Discovery Inc, with periods of positive returns followed by a prolonged period of capital inefficiency and negative returns. This downward trend raises concerns about the company's capital allocation strategies and operational performance during the latter half of the observed period.
Peer comparison
Dec 31, 2024