ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Warner Bros. Discovery's annualized net income for the quarter that ended in Dec. 2023 was $-1,600 Mil. Warner Bros. Discovery's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $45,000 Mil. Therefore, Warner Bros. Discovery's annualized ROE % for the quarter that ended in Dec. 2023 was -3.56%.
The historical rank and industry rank for Warner Bros. Discovery's ROE % or its related term are showing as below:
WBD'
s ROE % Range Over the Past 10 Years
Min: -25.12 Med: 10.56 Max: 22.64
Current: -6.82
During the past 13 years, Warner Bros. Discovery's highest ROE % was 22.64%. The lowest was -25.12%. And the median was 10.56%.
WBD's ROE % is ranked worse than 70.21% of 987
companies
in the Media - Diversified industry
Industry Median: 2.39
vs WBD: -6.82
Warner Bros. Discovery ROE % Historical Data
The historical data trend for Warner Bros. Discovery's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Warner Bros. Discovery's ROE %
For the Entertainment subindustry, Warner Bros. Discovery's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Warner Bros. Discovery's ROE % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Bros. Discovery's ROE % distribution charts can be found below:
* The bar in red indicates where Warner Bros. Discovery's ROE % falls into.
Warner Bros. Discovery ROE % Calculation
Warner Bros. Discovery's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2023) net income data.
ROE % is displayed in the 30-year financial page.
Warner Bros. Discovery (NAS:WBD) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Warner Bros. Discovery ROE % Related Terms
Thank you for viewing the detailed overview of Warner Bros. Discovery's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Warner Bros. Discovery (Warner Bros. Discovery) Business Description
Warner Bros. Discovery, the result of combining two large media firms, is one of the largest media firms in the world with tremendous scale and reach. The new company owns some of the biggest global networks including HBO, Discovery, CNN, and TLC and well-known franchises like Superman, Rick and Morty, and Game of Thrones. The firm's content production studios include Warner Bros., HBO, Discovery Studios, DC Films, and Cartoon Network Studios. The company operates two major streaming services, Max and Discovery+.
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