Warner Bros Discovery Inc (WBD)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.07 | 2.71 | 2.85 | 2.97 | 3.26 |
Warner Bros Discovery Inc has consistently maintained a strong solvency position as indicated by its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00 across the years from 2020 to 2024. This suggests that the company has not relied heavily on debt to finance its assets or operations during this period.
Additionally, the Financial leverage ratio has shown some fluctuation but has generally trended downwards from 3.26 in 2020 to 2.71 in 2023, before increasing slightly to 3.07 in 2024. Although the increase in 2024 may indicate a slight increase in leverage compared to the prior year, the overall downward trend in the ratio indicates that the company has been effectively managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure.
Overall, the solvency ratios suggest that Warner Bros Discovery Inc has a solid financial position with low debt levels relative to its assets and equity, and has demonstrated prudent financial management practices over the years analyzed.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -6.65 | -0.72 | -4.02 | 3.27 | 3.73 |
Warner Bros Discovery Inc's interest coverage ratio has shown a declining trend over the years based on the provided data. In particular, the interest coverage ratio was 3.73 as of December 31, 2020, indicating that the company's operating income was sufficient to cover its interest expense approximately 3.73 times.
However, the ratio decreased to 3.27 as of December 31, 2021, suggesting a slightly weaker ability to cover interest payments. The trend worsened significantly in the subsequent years, with the interest coverage ratio turning negative. Specifically, the ratio was -4.02 as of December 31, 2022, -0.72 as of December 31, 2023, and -6.65 as of December 31, 2024.
A negative interest coverage ratio implies that the company's operating income is insufficient to cover its interest expenses, indicating financial distress and raising concerns about the company's ability to meet its debt obligations solely from operating income.
Overall, the declining trend in Warner Bros Discovery Inc's interest coverage ratio raises red flags regarding the company's financial health and suggests the need for close monitoring of its debt management and operational efficiency.