Warner Bros Discovery Inc (WBD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 122,757,000 | 134,001,000 | 34,427,000 | 34,087,000 | 33,735,000 |
| Total stockholders’ equity | US$ in thousands | 45,226,000 | 47,095,000 | 11,599,000 | 10,464,000 | 9,891,000 |
| Financial leverage ratio | 2.71 | 2.85 | 2.97 | 3.26 | 3.41 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $122,757,000K ÷ $45,226,000K
= 2.71
Warner Bros. Discovery Inc's financial leverage ratio has exhibited a declining trend over the past five years, decreasing from 3.41 in 2019 to 2.71 in 2023. This decrease suggests an improvement in the company's ability to meet its financial obligations with a lower level of debt. A lower financial leverage ratio indicates that the company relies less on debt financing relative to its equity, which can reduce the risk of financial distress. However, it is essential to assess the trend in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023