Warner Bros. Discovery (WBO:WBDI) Interest Coverage : 0.23 (As of Mar. 2025)

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What is Warner Bros. Discovery Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Warner Bros. Discovery's Operating Income for the three months ended in Mar. 2025 was €99 Mil. Warner Bros. Discovery's Interest Expense for the three months ended in Mar. 2025 was €-433 Mil. Warner Bros. Discovery's interest coverage for the quarter that ended in Mar. 2025 was 0.23. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Warner Bros. Discovery's Interest Coverage or its related term are showing as below:

WBO:WBDI' s Interest Coverage Range Over the Past 10 Years
Min: 0.01 Med: 4.34 Max: 6.22
Current: 0.18

WBO:WBDI's Interest Coverage is ranked worse than
98.72% of 626 companies
in the Media - Diversified industry
Industry Median: 10.51 vs WBO:WBDI: 0.18

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Warner Bros. Discovery Interest Coverage Historical Data

The historical data trend for Warner Bros. Discovery's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Warner Bros. Discovery Interest Coverage Chart

Warner Bros. Discovery Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

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4.21

3.12

0.01

Warner Bros. Discovery Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Interest Coverage	Get a 7-Day Free Trial															-	-	0.60	1.30	0.23

Competitive Comparison of Warner Bros. Discovery's Interest Coverage

For the Entertainment subindustry, Warner Bros. Discovery's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Warner Bros. Discovery's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Warner Bros. Discovery's Interest Coverage falls into.

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Warner Bros. Discovery Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Warner Bros. Discovery's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Warner Bros. Discovery's Interest Expense was €-1,926 Mil. Its Operating Income was €17 Mil. And its Long-Term Debt & Capital Lease Obligation was €35,103 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	17.19	/	-1926.235
	=	0.01

Warner Bros. Discovery's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Warner Bros. Discovery's Interest Expense was €-433 Mil. Its Operating Income was €99 Mil. And its Long-Term Debt & Capital Lease Obligation was €32,048 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	98.975	/	-432.9
	=	0.23

The higher the ratio, the stronger the company's Financial Strength is.

Warner Bros. Discovery (WBO:WBDI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Warner Bros. Discovery Interest Coverage Related Terms

Thank you for viewing the detailed overview of Warner Bros. Discovery's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Warner Bros. Discovery Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Warner Bros. Discovery Inc (WBO:WBDI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

WBD:USA 1WBD:Italy J5Ad:UK J5A:Germany J5A:Germany J5A:Germany J5A:Germany W1BD34:Brazil

Address

230 Park Avenue South, New York, NY, USA, 10003

Website

https://www.wbd.com

Warner Bros. Discovery was formed in 2022 through the combination of WarnerMedia and Discovery Communications. It operates in three global business segments: studios, networks, and direct-to-consumer. Warner Bros. Pictures is the crown jewel of the studios business, producing, distributing, and licensing movies and television shows. The networks business consists of basic cable networks, such as CNN, TNT, TBS, Discovery, HGTV, and the Food Network. Direct-to-consumer includes HBO and the firm's streaming platforms, which have now been consolidated to Max and Discovery+. Much of the DTC content is created within the firm's other two business segments. Each segment operates with a global reach, with Max available in over 70 countries.

Warner Bros. Discovery Headlines

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