Warner Bros. Discovery Financials
Warner Bros. Discovery (WBD) reported $37.3B in revenue for fiscal year 2025, down 5.1% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Warner Bros. Discovery’s return to operating profit without revenue growth is paired with cash generation far above reported earnings.
Revenue declined in FY2025 while operating margin improved from-25.5% to2.0% , so the return to profit was not volume-led. Operating cash flow reached$4.3B against$727M of net income, nearly 6x earnings, indicating that amortization and other noncash charges materially shape reported profit.
Gross margin rose from
Leverage is declining: long-term debt fell to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Warner Bros. Discovery's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Warner Bros. Discovery has an operating margin of 2.0%, meaning the company retains $2 of operating profit per $100 of revenue. This below-average margin results in a low score of 22/100, suggesting thin profitability after operating expenses. This is up from -25.5% the prior year.
Warner Bros. Discovery's revenue declined 5.1% year-over-year, from $39.3B to $37.3B. This contraction results in a growth score of 18/100.
Warner Bros. Discovery has elevated debt relative to equity (D/E of 0.90), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 13/100, reflecting increased financial risk.
Warner Bros. Discovery's current ratio of 1.06 is below the typical benchmark, resulting in a score of 21/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Warner Bros. Discovery converts 8.3% of revenue into free cash flow ($3.1B). This strong cash generation earns a score of 69/100.
Warner Bros. Discovery generates a 2.0% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 24/100. This is up from -33.2% the prior year.
Warner Bros. Discovery scores 0.92, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($70.8B) relative to total liabilities ($62.9B). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Warner Bros. Discovery passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Warner Bros. Discovery generates $5.94 in operating cash flow ($4.3B OCF vs $727.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Warner Bros. Discovery earns $0.35 in operating income for every $1 of interest expense ($738.0M vs $2.1B). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Warner Bros. Discovery generated $37.3B in revenue in fiscal year 2025. This represents a decrease of 5.1% from the prior year.
Warner Bros. Discovery's EBITDA was $6.4B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 314.4% from the prior year.
Warner Bros. Discovery reported $727.0M in net income in fiscal year 2025. This represents an increase of 106.4% from the prior year.
Warner Bros. Discovery earned $0.29 per diluted share (EPS) in fiscal year 2025. This represents an increase of 106.3% from the prior year.
Cash & Balance Sheet
Warner Bros. Discovery generated $3.1B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 30.2% from the prior year.
Warner Bros. Discovery held $4.6B in cash against $32.4B in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
Warner Bros. Discovery's gross margin was 44.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 2.4 percentage points from the prior year.
Warner Bros. Discovery's operating margin was 2.0% in fiscal year 2025, reflecting core business profitability. This is up 27.5 percentage points from the prior year.
Warner Bros. Discovery's net profit margin was 1.9% in fiscal year 2025, showing the share of revenue converted to profit. This is up 30.7 percentage points from the prior year.
Warner Bros. Discovery's ROE was 2.0% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 35.3 percentage points from the prior year.
Capital Allocation
Warner Bros. Discovery invested $1.2B in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 29.9% from the prior year.
Not reported for fiscal year 2025.
Not reported for fiscal year 2025.
WBD Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $36.1B | $37.3B-5.1% | $39.3B-4.8% | $41.3B+22.2% | $33.8B+177.4% | $12.2B+14.2% | $10.7B-4.2% | $11.1B+5.6% | $10.6B+53.5% | $6.9B+5.8% | $6.5B+1.6% | $6.4B+2.1% | $6.3B+13.2% | $5.5B+23.4% | $4.5B+7.7% | $4.2B |
| Cost of Revenue | $19.1B | $20.9B-9.1% | $23.0B-6.3% | $24.5B+20.0% | $20.4B+342.5% | $4.6B+19.7% | $3.9B+1.1% | $3.8B-2.9% | $3.9B+48.2% | $2.7B+9.2% | $2.4B+3.8% | $2.3B+10.3% | $2.1B+25.8% | $1.7B+38.7% | $1.2B+3.6% | $1.2B |
| Gross Profit | $17.1B | $16.4B+0.4% | $16.4B-2.6% | $16.8B+25.6% | $13.4B+76.7% | $7.6B+11.2% | $6.8B-7.0% | $7.3B+10.7% | $6.6B+56.9% | $4.2B+3.7% | $4.1B+0.3% | $4.1B-2.2% | $4.1B+7.7% | $3.8B+17.7% | $3.3B+9.3% | $3.0B |
| SG&A Expenses | $9.8B | $9.4B+1.3% | $9.3B-4.1% | $9.7B+0.2% | $9.7B+141.0% | $4.0B+47.5% | $2.7B-2.4% | $2.8B+6.4% | $2.6B+48.2% | $1.8B+4.6% | $1.7B+1.3% | $1.7B-1.4% | $1.7B+5.9% | $1.6B+24.2% | $1.3B+9.9% | $1.2B |
| Operating Income | -$1.3B | $738.0M+107.4% | -$10.0B-548.1% | -$1.5B+79.0% | -$7.4B-466.3% | $2.0B-20.0% | $2.5B-16.4% | $3.0B+55.6% | $1.9B+171.2% | $713.0M-65.4% | $2.1B+3.7% | $2.0B-3.7% | $2.1B+4.4% | $2.0B+6.2% | $1.9B+3.1% | $1.8B |
| Interest Expense | $2.2B | $2.1B+3.4% | $2.0B-9.2% | $2.2B+25.0% | $1.8B+180.7% | $633.0M-2.3% | $648.0M-4.3% | $677.0M-7.1% | $729.0M+53.5% | $475.0M+34.6% | $353.0M+7.0% | $330.0M+0.6% | $328.0M+7.2% | $306.0M+23.4% | $248.0M+19.2% | $208.0M |
| Income Tax | -$638.0M | $890.0M+846.8% | $94.0M+112.0% | -$784.0M+52.9% | -$1.7B-804.7% | $236.0M-36.7% | $373.0M+360.5% | $81.0M-76.2% | $341.0M+93.8% | $176.0M-61.1% | $453.0M-11.4% | $511.0M-16.2% | $610.0M-7.4% | $659.0M+17.3% | $562.0M+31.6% | $427.0M |
| Net Income | -$3.2B | $727.0M+106.4% | -$11.3B-261.8% | -$3.1B+57.6% | -$7.4B-832.7% | $1.0B-17.5% | $1.2B-41.1% | $2.1B+248.3% | $594.0M+276.3% | -$337.0M-128.2% | $1.2B+15.5% | $1.0B-9.2% | $1.1B+6.0% | $1.1B+14.0% | $943.0M-16.7% | $1.1B |
| EPS (Diluted) | — | $0.29+106.3% | -$4.62-260.9% | -$1.28+66.5% | -$3.82 | $1.54-14.9% | $1.81 | N/A | N/A | N/A | N/A | N/A | N/A | $2.97+19.8% | $2.48-11.4% | $2.80 |
Not reported in any period shown, so not listed: R&D Expenses.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
WBD Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $100.1B-4.3% | $104.6B-14.8% | $122.8B-8.4% | $134.0B+289.2% | $34.4B+1.0% | $34.1B+1.0% | $33.7B+3.6% | $32.5B+44.3% | $22.6B+43.9% | $15.7B-1.2% | $15.9B-0.7% | $16.0B+6.6% | $15.0B+15.8% | $12.9B+8.5% | $11.9B |
| Current Assets | $13.2B-6.2% | $14.1B-1.0% | $14.2B+1.6% | $14.0B+92.7% | $7.3B+18.5% | $6.1B+17.5% | $5.2B+23.3% | $4.2B-57.7% | $10.0B+299.3% | $2.5B-3.6% | $2.6B+4.2% | $2.5B+3.4% | $2.4B-11.7% | $2.7B+12.3% | $2.4B |
| Cash & Equivalents | $4.6B-14.0% | $5.3B+40.5% | $3.8B+1.3% | $3.7B-4.5% | $3.9B+86.8% | $2.1B+34.7% | $1.6B+57.4% | $986.0M-86.5% | $7.3B+2336.3% | $300.0M-23.1% | $390.0M+6.3% | $367.0M-10.0% | $408.0M-66.0% | $1.2B+14.6% | $1.0B |
| Inventory | N/A | N/A | N/A | N/A | $1.0M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | $25.9B+1.0% | $25.7B-26.6% | $35.0B+1.5% | $34.4B+166.7% | $12.9B-1.2% | $13.1B+0.2% | $13.1B+0.3% | $13.0B+83.9% | $7.1B-12.0% | $8.0B-1.5% | $8.2B-0.9% | $8.2B+12.2% | $7.3B+14.7% | $6.4B+1.7% | $6.3B |
| Total Liabilities | $62.9B-9.6% | $69.6B-8.7% | $76.3B-10.6% | $85.3B+305.8% | $21.0B-3.1% | $21.7B-0.3% | $21.8B-1.2% | $22.0B+25.7% | $17.5B+70.8% | $10.3B+0.9% | $10.2B+5.7% | $9.6B+10.0% | $8.7B+31.8% | $6.6B+23.0% | $5.4B |
| Current Liabilities | $12.5B-20.9% | $15.8B+3.1% | $15.3B+2.1% | $15.0B+334.1% | $3.5B+12.2% | $3.1B-4.8% | $3.2B-19.0% | $4.0B+113.6% | $1.9B+19.9% | $1.6B-1.1% | $1.6B-39.4% | $2.6B+101.2% | $1.3B+36.8% | $946.0M+26.8% | $746.0M |
| Long-Term Debt | $32.4B-11.8% | $36.8B-12.3% | $41.9B-13.9% | $48.6B+237.3% | $14.4B-4.3% | $15.1B+1.7% | $14.8B-1.1% | $15.0B+1.5% | $14.8B+88.2% | $7.8B+3.0% | $7.6B+26.9% | $6.0B-7.4% | $6.5B+24.4% | $5.2B+23.5% | $4.2B |
| Total Equity | $35.9B+5.5% | $34.0B-24.7% | $45.2B-4.0% | $47.1B+306.0% | $11.6B+10.8% | $10.5B+5.8% | $9.9B+17.9% | $8.4B+81.9% | $4.6B-10.8% | $5.2B-5.2% | $5.5B-2.7% | $5.6B-9.6% | $6.2B-1.5% | $6.3B-3.5% | $6.5B |
| Retained Earnings | -$11.5B+5.9% | -$12.2B-1218.9% | -$928.0M-142.1% | $2.2B-77.0% | $9.6B+12.1% | $8.5B+16.5% | $7.3B+39.6% | $5.3B+13.4% | $4.6B-11.5% | $5.2B+15.8% | $4.5B+18.6% | $3.8B+31.7% | $2.9B+39.4% | $2.1B+83.3% | $1.1B |
Not reported in any period shown, so not listed: Accounts Receivable.
WBD Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $3.4B | $4.3B-19.6% | $5.4B-28.1% | $7.5B+73.7% | $4.3B+53.8% | $2.8B+2.2% | $2.7B-19.4% | $3.4B+31.9% | $2.6B+58.1% | $1.6B+18.0% | $1.4B+6.6% | $1.3B-1.8% | $1.3B+2.6% | $1.3B+16.9% | $1.1B-0.1% | $1.1B |
| Capital Expenditures | $1.2B | $1.2B+29.9% | $948.0M-28.0% | $1.3B+33.3% | $987.0M+164.6% | $373.0M-7.2% | $402.0M+39.1% | $289.0M+96.6% | $147.0M+8.9% | $135.0M+53.4% | $88.0M-14.6% | $103.0M-14.2% | $120.0M+4.3% | $115.0M+49.4% | $77.0M+32.8% | $58.0M |
| Free Cash Flow | $2.2B | $3.1B-30.2% | $4.4B-28.1% | $6.2B+85.7% | $3.3B+36.8% | $2.4B+3.8% | $2.3B-24.9% | $3.1B+28.0% | $2.4B+62.6% | $1.5B+15.6% | $1.3B+8.5% | $1.2B-0.6% | $1.2B+2.4% | $1.2B+14.5% | $1.0B-1.9% | $1.0B |
| Investing Cash Flow | -$1.2B | -$1.2B-237.8% | -$349.0M+72.3% | -$1.3B-135.7% | $3.5B+6392.9% | -$56.0M+92.0% | -$703.0M-60.5% | -$438.0M+94.9% | -$8.6B-1257.5% | -$633.0M-147.3% | -$256.0M | N/A | N/A | N/A | -$643.0M-200.5% | -$214.0M |
| Financing Cash Flow | -$3.6B | -$4.2B-13.1% | -$3.7B+35.8% | -$5.8B+24.6% | -$7.7B-807.6% | -$853.0M+44.9% | -$1.5B+34.3% | -$2.4B-732.9% | -$283.0M-104.8% | $6.0B+602.6% | -$1.2B | N/A | N/A | N/A | -$305.0M-2.7% | -$297.0M |
| Share Buybacks | N/A | N/A | N/A | N/A | $0 | $0-100.0% | $969.0M+53.1% | $633.0M | $0-100.0% | $603.0M-56.1% | $1.4B+96.8% | $698.0M-43.3% | $1.2B+17.4% | $1.0B-24.0% | $1.4B+38.4% | $997.0M |
Not reported in any period shown, so not listed: Dividends Paid.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
WBD Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.0%+2.4pp | 41.6%+0.9pp | 40.6%+1.1pp | 39.6%-22.5pp | 62.1%-1.7pp | 63.8%-1.9pp | 65.7%+3.0pp | 62.7%+1.3pp | 61.4%-1.2pp | 62.6%-0.8pp | 63.4%-2.7pp | 66.1%-3.4pp | 69.5%-3.4pp | 72.9%+1.1pp | 71.8% |
| Operating Margin | 2.0%+27.5pp | -25.5%-21.8pp | -3.8%+18.0pp | -21.8%-38.3pp | 16.5%-7.1pp | 23.6%-3.4pp | 27.0%+8.7pp | 18.3%+8.0pp | 10.4%-21.3pp | 31.7%+0.6pp | 31.0%-1.9pp | 32.9%-2.8pp | 35.7%-5.8pp | 41.4%-1.8pp | 43.3% |
| Net Margin | 1.9%+30.7pp | -28.8%-21.2pp | -7.6%+14.2pp | -21.8%-30.0pp | 8.3%-3.2pp | 11.4%-7.2pp | 18.6%+12.9pp | 5.6%+10.5pp | -4.9%-23.3pp | 18.4%+2.2pp | 16.2%-2.0pp | 18.2%-1.2pp | 19.4%-1.6pp | 21.0%-6.1pp | 27.2% |
| Return on Equity | 2.0%+35.3pp | -33.2%-26.3pp | -6.9%+8.7pp | -15.7%-24.3pp | 8.7%-3.0pp | 11.7%-9.3pp | 20.9%+13.8pp | 7.1%+14.4pp | -7.3%-30.4pp | 23.1%+4.1pp | 19.0%-1.4pp | 20.3%+3.0pp | 17.3%+2.4pp | 15.0%-2.4pp | 17.4% |
| Return on Assets | 0.7%+11.6pp | -10.8%-8.3pp | -2.5%+3.0pp | -5.5%-8.4pp | 2.9%-0.7pp | 3.6%-2.6pp | 6.1%+4.3pp | 1.8%+3.3pp | -1.5%-9.1pp | 7.6%+1.1pp | 6.5%-0.6pp | 7.1%-0.1pp | 7.2%-0.1pp | 7.3%-2.2pp | 9.5% |
| Current Ratio | 1.06+0.2x | 0.890.0x | 0.930.0x | 0.93-1.2x | 2.10+0.1x | 1.99+0.4x | 1.61+0.6x | 1.06-4.3x | 5.34+3.7x | 1.600.0x | 1.64+0.7x | 0.96-0.9x | 1.86-1.0x | 2.89-0.4x | 3.26 |
| Debt-to-Equity | 0.90-0.2x | 1.08+0.2x | 0.93-0.1x | 1.03-0.2x | 1.24-0.2x | 1.44-0.1x | 1.50-0.3x | 1.79-1.4x | 3.20+1.7x | 1.52+0.1x | 1.40+0.3x | 1.070.0x | 1.05+0.2x | 0.83+0.2x | 0.65 |
| FCF Margin | 8.3%-3.0pp | 11.3%-3.7pp | 14.9%+5.1pp | 9.8%-10.1pp | 19.9%-2.0pp | 21.9%-6.0pp | 27.9%+4.9pp | 23.0%+1.3pp | 21.7%+1.9pp | 19.9%+1.3pp | 18.6%-0.5pp | 19.1%-2.0pp | 21.1%-1.6pp | 22.8%-2.2pp | 25.0% |
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Where Warner Bros. Discovery Ranks
Frequently Asked Questions
What is Warner Bros. Discovery's annual revenue?
Warner Bros. Discovery (WBD) reported $37.3B in total revenue for fiscal year 2025. This represents a -5.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Warner Bros. Discovery's revenue growing?
Warner Bros. Discovery (WBD) revenue declined by 5.1% year-over-year, from $39.3B to $37.3B in fiscal year 2025.
Is Warner Bros. Discovery profitable?
Yes, Warner Bros. Discovery (WBD) reported a net income of $727.0M in fiscal year 2025, with a net profit margin of 1.9%.
What is Warner Bros. Discovery's EBITDA?
Warner Bros. Discovery (WBD) had EBITDA of $6.4B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Warner Bros. Discovery have?
As of fiscal year 2025, Warner Bros. Discovery (WBD) had $4.6B in cash and equivalents against $32.4B in long-term debt.
What is Warner Bros. Discovery's gross margin?
Warner Bros. Discovery (WBD) had a gross margin of 44.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Warner Bros. Discovery's operating margin?
Warner Bros. Discovery (WBD) had an operating margin of 2.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Warner Bros. Discovery's net profit margin?
Warner Bros. Discovery (WBD) had a net profit margin of 1.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Warner Bros. Discovery's return on equity (ROE)?
Warner Bros. Discovery (WBD) has a return on equity of 2.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Warner Bros. Discovery's free cash flow?
Warner Bros. Discovery (WBD) generated $3.1B in free cash flow during fiscal year 2025. This represents a -30.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Warner Bros. Discovery's operating cash flow?
Warner Bros. Discovery (WBD) generated $4.3B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Warner Bros. Discovery's total assets?
Warner Bros. Discovery (WBD) had $100.1B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Warner Bros. Discovery's capital expenditures?
Warner Bros. Discovery (WBD) invested $1.2B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Warner Bros. Discovery's current ratio?
Warner Bros. Discovery (WBD) had a current ratio of 1.06 as of fiscal year 2025, which is considered adequate.
What is Warner Bros. Discovery's debt-to-equity ratio?
Warner Bros. Discovery (WBD) had a debt-to-equity ratio of 0.90 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Warner Bros. Discovery's return on assets (ROA)?
Warner Bros. Discovery (WBD) had a return on assets of 0.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Warner Bros. Discovery's Altman Z-Score?
Warner Bros. Discovery (WBD) has an Altman Z-Score of 0.92, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Warner Bros. Discovery's Piotroski F-Score?
Warner Bros. Discovery (WBD) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Warner Bros. Discovery's earnings high quality?
Warner Bros. Discovery (WBD) has an earnings quality ratio of 5.94x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Warner Bros. Discovery cover its interest payments?
Warner Bros. Discovery (WBD) has an interest coverage ratio of 0.35x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Warner Bros. Discovery?
Warner Bros. Discovery (WBD) scores 28 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.