Stock Analysis on Net

Warner Bros. Discovery Inc. (NASDAQ:WBD)

This company has been moved to the archive! The financial data has not been updated since November 4, 2022.

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Warner Bros. Discovery Inc., profitability ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Return on Sales
Gross profit margin 62.10% 63.83% 65.73% 62.71% 61.36%
Operating profit margin 16.50% 23.57% 27.00% 18.33% 10.37%
Net profit margin 8.25% 11.42% 18.57% 5.63% -4.90%
Return on Investment
Return on equity (ROE) 8.67% 11.65% 20.92% 7.08% -7.31%
Return on assets (ROA) 2.92% 3.58% 6.13% 1.82% -1.49%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Warner Bros. Discovery Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Warner Bros. Discovery Inc. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Warner Bros. Discovery Inc. net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Warner Bros. Discovery Inc. ROE deteriorated from 2019 to 2020 and from 2020 to 2021.
ROA A profitability ratio calculated as net income divided by total assets. Warner Bros. Discovery Inc. ROA deteriorated from 2019 to 2020 and from 2020 to 2021.

Gross Profit Margin

Warner Bros. Discovery Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Gross profit 7,571 6,811 7,325 6,618 4,217
Revenues 12,191 10,671 11,144 10,553 6,873
Profitability Ratio
Gross profit margin1 62.10% 63.83% 65.73% 62.71% 61.36%
Benchmarks
Gross Profit Margin, Competitors2
Alphabet Inc. 56.94% 53.58% 55.58%
Comcast Corp. 66.96% 68.02% 68.39%
Meta Platforms Inc. 80.79% 80.58% 81.94%
Netflix Inc. 41.64% 38.89% 38.28%
Walt Disney Co. 33.06% 32.89% 39.60%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 7,571 ÷ 12,191 = 62.10%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Warner Bros. Discovery Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Operating Profit Margin

Warner Bros. Discovery Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Operating income 2,012 2,515 3,009 1,934 713
Revenues 12,191 10,671 11,144 10,553 6,873
Profitability Ratio
Operating profit margin1 16.50% 23.57% 27.00% 18.33% 10.37%
Benchmarks
Operating Profit Margin, Competitors2
Alphabet Inc. 30.55% 22.59% 21.15%
Comcast Corp. 17.89% 16.89% 19.39%
Meta Platforms Inc. 39.65% 38.01% 33.93%
Netflix Inc. 20.86% 18.34% 12.92%
Walt Disney Co. 4.46% -2.97% 15.33%
Operating Profit Margin, Sector
Media & Entertainment 26.39% 20.33% 21.48%
Operating Profit Margin, Industry
Communication Services 22.45% 16.35% 19.85%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 2,012 ÷ 12,191 = 16.50%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Warner Bros. Discovery Inc. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Net Profit Margin

Warner Bros. Discovery Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) available to Discovery, Inc. 1,006 1,219 2,069 594 (337)
Revenues 12,191 10,671 11,144 10,553 6,873
Profitability Ratio
Net profit margin1 8.25% 11.42% 18.57% 5.63% -4.90%
Benchmarks
Net Profit Margin, Competitors2
Alphabet Inc. 29.51% 22.06% 21.22%
Comcast Corp. 12.17% 10.17% 11.99%
Meta Platforms Inc. 33.38% 33.90% 26.15%
Netflix Inc. 17.23% 11.05% 9.26%
Walt Disney Co. 2.96% -4.38% 15.89%
Net Profit Margin, Sector
Media & Entertainment 23.20% 17.27% 18.28%
Net Profit Margin, Industry
Communication Services 18.71% 11.50% 14.63%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Net profit margin = 100 × Net income (loss) available to Discovery, Inc. ÷ Revenues
= 100 × 1,006 ÷ 12,191 = 8.25%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Warner Bros. Discovery Inc. net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Return on Equity (ROE)

Warner Bros. Discovery Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) available to Discovery, Inc. 1,006 1,219 2,069 594 (337)
Total Discovery, Inc. stockholders’ equity 11,599 10,464 9,891 8,386 4,610
Profitability Ratio
ROE1 8.67% 11.65% 20.92% 7.08% -7.31%
Benchmarks
ROE, Competitors2
Alphabet Inc. 30.22% 18.09% 17.05%
Comcast Corp. 14.73% 11.66% 15.78%
Meta Platforms Inc. 31.53% 22.72% 18.29%
Netflix Inc. 32.28% 24.96% 24.62%
Walt Disney Co. 2.25% -3.43% 12.44%
ROE, Sector
Media & Entertainment 23.69% 14.90% 16.36%
ROE, Industry
Communication Services 20.34% 11.50% 15.27%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROE = 100 × Net income (loss) available to Discovery, Inc. ÷ Total Discovery, Inc. stockholders’ equity
= 100 × 1,006 ÷ 11,599 = 8.67%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Warner Bros. Discovery Inc. ROE deteriorated from 2019 to 2020 and from 2020 to 2021.

Return on Assets (ROA)

Warner Bros. Discovery Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) available to Discovery, Inc. 1,006 1,219 2,069 594 (337)
Total assets 34,427 34,087 33,735 32,550 22,555
Profitability Ratio
ROA1 2.92% 3.58% 6.13% 1.82% -1.49%
Benchmarks
ROA, Competitors2
Alphabet Inc. 21.16% 12.60% 12.45%
Comcast Corp. 5.13% 3.85% 4.96%
Meta Platforms Inc. 23.72% 18.29% 13.86%
Netflix Inc. 11.48% 7.03% 5.49%
Walt Disney Co. 0.98% -1.42% 5.70%
ROA, Sector
Media & Entertainment 13.02% 8.04% 8.75%
ROA, Industry
Communication Services 8.36% 4.69% 6.30%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROA = 100 × Net income (loss) available to Discovery, Inc. ÷ Total assets
= 100 × 1,006 ÷ 34,427 = 2.92%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Warner Bros. Discovery Inc. ROA deteriorated from 2019 to 2020 and from 2020 to 2021.