Warner Bros Discovery Inc (WBD)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	45,226,000	47,095,000	11,599,000	10,464,000	9,891,000
Debt-to-capital ratio		0.47	0.45	0.55	0.59	0.60

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $40,500,000K ÷ ($40,500,000K + $45,226,000K)
= 0.47

The debt-to-capital ratio of Warner Bros. Discovery Inc has shown a declining trend over the past five years. From 0.61 in 2019, the ratio has decreased to 0.49 in 2023. This indicates that the company's reliance on debt financing relative to its total capital has been reducing gradually. A lower debt-to-capital ratio suggests a stronger financial position and lower financial risk for the company. It signifies that a greater proportion of its capital structure is funded by equity rather than debt. This trend may imply that Warner Bros. Discovery Inc has been actively managing its debt levels, which could enhance its creditworthiness and financial stability. Further assessment and comparison with industry benchmarks would provide a more thorough understanding of the company's leverage position.