Warner Bros Discovery Inc (WBD)

Debt-to-equity 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-equity ratio		0.90	0.81	1.24	1.44	1.50

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $40,500,000K ÷ $45,226,000K
= 0.90

The debt-to-equity ratio of Warner Bros. Discovery Inc has been fluctuating over the past five years. In 2023, the ratio decreased to 0.97 from 1.04 in 2022, indicating a lower level of financial leverage compared to the previous year. This decrease suggests that the company relied less on debt financing and had a stronger equity position relative to its debt obligations.

Looking back, the ratio has shown a declining trend since 2019 when it was 1.56. This trend implies that Warner Bros. Discovery Inc has been gradually reducing its debt burden in relation to its equity capital over the years. A decreasing debt-to-equity ratio can be a positive sign for investors, as it may indicate improved financial stability and reduced financial risk.

Overall, the decreasing trend in Warner Bros. Discovery Inc's debt-to-equity ratio from 2019 to 2023 reflects a more conservative capital structure and potentially stronger financial health, as the company has been managing its debt levels effectively relative to its shareholders' equity.