Warner Bros Discovery Inc (WBD)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	122,757,000	123,749,000	128,618,000	130,584,000	134,001,000	136,049,000	142,240,000	33,799,000	34,427,000	34,318,000	34,572,000	33,625,000	34,087,000	33,438,000	33,089,000	33,390,000	33,735,000	32,825,000	33,845,000	32,444,000
Debt-to-assets ratio		0.33	0.30	0.32	0.32	0.28	0.28	0.30	0.40	0.42	0.42	0.42	0.44	0.44	0.45	0.45	0.46	0.44	0.45	0.44	0.46

December 31, 2023 calculation

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

Warner Bros. Discovery Inc's debt-to-assets ratio has been relatively stable over the past eight quarters, ranging between 0.36 and 0.43. The ratio indicates that, on average, 36% to 43% of the company's total assets are funded by debt.

A ratio of 0.36 to 0.37 suggests that the company relies more on equity financing rather than debt to support its operations and investments, which can be viewed positively by investors and lenders as it reflects a lower level of financial risk.

However, the increase in the ratio to 0.43 in Q1 2022 might indicate a slight shift towards more reliance on debt financing, although it is important to consider the reasons behind this change.

Overall, the consistent range of debt-to-assets ratios signals a balanced capital structure for Warner Bros. Discovery Inc, providing stability and potential financial flexibility for the company.