Warner Bros Discovery Inc (WBD)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	40,500,000	38,000,000	14,420,000	15,069,000	14,810,000
Total assets	US$ in thousands	122,757,000	134,001,000	34,427,000	34,087,000	33,735,000
Debt-to-assets ratio		0.33	0.28	0.42	0.44	0.44

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $40,500,000K ÷ $122,757,000K
= 0.33

The debt-to-assets ratio of Warner Bros. Discovery Inc has shown a decreasing trend over the past five years, indicating that the company has been relying less on debt financing relative to its total assets. In particular, the ratio decreased from 0.46 in 2019 to 0.36 in 2023.

A lower debt-to-assets ratio suggests that the company has a stronger financial position and is less reliant on borrowed funds to finance its operations and investments. This may be perceived positively by investors and creditors as lower debt levels could reduce financial risk and increase the company's ability to weather economic downturns.

Warner Bros. Discovery Inc's decreasing trend in the debt-to-assets ratio could be a result of various factors, such as effective debt management strategies, improved profitability, or a shift towards using equity financing. It is essential to monitor this ratio over time to assess the company's ability to meet its financial obligations and manage its debt levels effectively.