Warner Bros Discovery Inc (WBD)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,689,000 | -3,575,000 | -5,926,000 | -8,743,000 | -7,257,000 | -4,968,000 | -2,298,000 | 2,276,000 | 1,875,000 | 2,123,000 | 2,222,000 | 1,979,000 | 2,240,000 | 2,398,000 | 2,520,000 | 2,769,000 | 2,818,000 | 2,763,000 | 2,536,000 | 2,234,000 |
| Long-term debt | US$ in thousands | 40,500,000 | 36,800,000 | 41,200,000 | 41,600,000 | 38,000,000 | 38,200,000 | 42,100,000 | 13,605,000 | 14,420,000 | 14,436,000 | 14,462,000 | 14,675,000 | 15,069,000 | 14,981,000 | 14,944,000 | 15,267,000 | 14,810,000 | 14,757,000 | 14,823,000 | 14,956,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 9,891,000 | 9,518,000 | 9,621,000 | 8,708,000 |
| Return on total capital | -1.97% | -4.38% | -6.84% | -9.92% | -8.53% | -5.73% | -2.46% | 8.90% | 7.21% | 8.15% | 8.55% | 7.76% | 8.77% | 9.57% | 10.16% | 11.19% | 11.41% | 11.38% | 10.37% | 9.44% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-1,689,000K ÷ ($40,500,000K + $45,226,000K)
= -1.97%
Warner Bros. Discovery Inc's return on total capital has shown fluctuations over the past quarters. The Q1 2022 saw a notable peak with a return of 7.18%, indicating efficient capital utilization. However, this positive performance was followed by a downward trend in subsequent quarters. The most recent quarter, Q4 2023, recorded a return of -1.00%, reflecting a decrease in the company's ability to generate profits from its total capital.
The declining trend in return on total capital from Q1 2022 to Q4 2023 suggests potential inefficiencies in Warner Bros. Discovery Inc's capital allocation and utilization strategies. It is crucial for the company to identify and address the underlying factors contributing to the decreasing returns to enhance overall financial performance and value creation for shareholders.
Peer comparison
Dec 31, 2023