Warner Bros Discovery Inc (WBD)

Financial leverage 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
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
Total stockholders’ equity	US$ in thousands	45,226,000	44,774,000	45,452,000	46,496,000	47,095,000	48,517,000	51,383,000	11,969,000	11,599,000	11,611,000	11,538,000	10,815,000	10,464,000	10,087,000	9,867,000	9,470,000	9,891,000	9,518,000	9,621,000	8,708,000
Financial leverage ratio		2.71	2.76	2.83	2.81	2.85	2.80	2.77	2.82	2.97	2.96	3.00	3.11	3.26	3.31	3.35	3.53	3.41	3.45	3.52	3.73

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $122,757,000K ÷ $45,226,000K
= 2.71

The financial leverage ratio of Warner Bros. Discovery Inc has shown some fluctuation over the past eight quarters. The ratio ranged from a low of 2.71 in Q4 2023 to a high of 2.85 in Q4 2022. Generally, the company has maintained a moderate level of financial leverage, with an average ratio of approximately 2.79 over the period analyzed.

A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing. Warner Bros. Discovery Inc's ratio consistently above 2 suggests that its capital structure is more heavily weighted towards debt, indicating higher financial risk. The increasing trend in the ratio from Q4 2022 to Q2 2023 could be a cause for concern as it indicates a potential increase in the company's reliance on debt to finance its operations.

It is important for investors and stakeholders to continue monitoring Warner Bros. Discovery Inc's financial leverage ratio to assess the company's ability to manage its debt levels and financial risk effectively.