Warner Bros Discovery Inc (WBD)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	104,560,000	106,333,000	108,029,000	119,819,000	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
Total stockholders’ equity	US$ in thousands	34,037,000	35,100,000	34,345,000	44,151,000	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
Financial leverage ratio		3.07	3.03	3.15	2.71	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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $104,560,000K ÷ $34,037,000K
= 3.07

Warner Bros Discovery Inc's financial leverage ratio has shown a declining trend from March 31, 2020, to December 31, 2024, indicating an improvement in the company's overall financial structure. The financial leverage ratio decreased from 3.53 in March 2020 to 2.71 in December 2024. This suggests that the company has been successful in reducing its reliance on debt to finance its operations and investments over the period under review.

A lower financial leverage ratio generally indicates that the company is using less debt to support its business activities, which can be perceived positively by investors and creditors as it may reduce the company's financial risk. However, it is important to note that while a low leverage ratio is generally favorable, an excessively low ratio may imply underutilization of debt as a cost-effective source of capital for growth opportunities.

Overall, Warner Bros Discovery Inc's decreasing financial leverage ratio reflects a more conservative approach to capital structure management, potentially enhancing the company's financial flexibility and resilience in the face of economic uncertainties. Investors and stakeholders may view this trend positively as it indicates a prudent debt management strategy by the company.