Warner Bros Discovery Inc (WBD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Warner Bros Discovery Inc has consistently maintained a strong solvency position as indicated by its solvency ratios. The company's Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have remained at 0.00 throughout the reporting periods, highlighting a debt-free capital structure. Furthermore, the Financial leverage ratio, which measures the company's financial leverage, has shown a declining trend over the years, starting at 3.53 in March 2020 and decreasing to 3.07 by December 31, 2024. This downward trend indicates that the company is relying less on debt financing and becoming more financially stable. Overall, Warner Bros Discovery Inc's solvency ratios suggest a low level of financial risk and a strong ability to meet its financial obligations in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -5.65 | -5.66 | -5.11 | -0.57 | -0.71 | -1.53 | -2.59 | -3.96 | -4.07 | -3.62 | -2.35 | 3.65 | 2.96 | 3.38 | 3.59 | 2.25 | 1.63 | 1.87 | 0.99 | 2.39 |
Warner Bros Discovery Inc's interest coverage ratio, calculated as EBIT divided by interest expenses, provides insight into the company's ability to meet its interest obligations from its operating income. The interest coverage ratio fluctuated over the reviewed periods.
From March 31, 2020, through June 30, 2021, the interest coverage ranged from 0.99 to 3.59, indicating some variability in the company's ability to cover interest payments. The ratio improved significantly in the subsequent quarters, reaching a high of 3.65 on March 31, 2022, suggesting better earnings relative to interest expenses.
However, starting June 30, 2022, the interest coverage ratio turned negative, indicating that the company's EBIT was insufficient to cover its interest expenses. The negative trend continued through December 31, 2024, with the ratio dropping as low as -5.66.
This negative trend in the interest coverage ratio raises concerns about the company's financial health and its ability to meet interest obligations. It suggests that Warner Bros Discovery Inc may be experiencing financial distress or challenges in generating sufficient earnings to cover its interest expenses. Further analysis of the company's financial performance and strategies may be required to address these issues and improve its interest coverage in the future.