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Warner Bros. Discovery (Warner Bros. Discovery) Financial Strength : 4 (As of Mar. 2024)


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What is Warner Bros. Discovery Financial Strength?

Warner Bros. Discovery has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Warner Bros. Discovery did not have earnings to cover the interest expense. Warner Bros. Discovery's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.07. As of today, Warner Bros. Discovery's Altman Z-Score is 0.40.


Competitive Comparison of Warner Bros. Discovery's Financial Strength

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

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

* The bar in red indicates where Warner Bros. Discovery's Financial Strength falls into.



Warner Bros. Discovery Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Warner Bros. Discovery's Interest Expense for the months ended in Mar. 2024 was $-515 Mil. Its Operating Income for the months ended in Mar. 2024 was $-220 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $39,148 Mil.

Warner Bros. Discovery's Interest Coverage for the quarter that ended in Mar. 2024 is

Warner Bros. Discovery did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Warner Bros. Discovery's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(3430 + 39148) / 39832
=1.07

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Warner Bros. Discovery has a Z-score of 0.40, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.4 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Warner Bros. Discovery  (NAS:WBD) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Warner Bros. Discovery has the Financial Strength Rank of 4.


Warner Bros. Discovery Financial Strength Related Terms

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


Warner Bros. Discovery (Warner Bros. Discovery) Business Description

Address
230 Park Avenue South, New York, NY, USA, 10003
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+.
Executives
Advance/newhouse Partnership director 5015 CAMPUSWOOD DR., EAST SYRACUSE NY 13057
Steven O Newhouse director 6350 COURT STREET, EAST SYRACUSE NY 13057-1211
Advance/newhouse Programming Partnership director, 10 percent owner 5000 CAMPUSWOOD DRIVE, E. SYRACUSE NY 13057
Gerhard Zeiler officer: President, International C/O WARNER BROS. DISCOVERY, INC., 230 PARK AVENUE SOUTH, NEW YORK NY 10003
Gunnar Wiedenfels officer: Chief Financial Officer C/O WARNER BROS. DISCOVERY, INC., 230 PARK AVENUE SOUTH, NEW YORK NY 10003
Fazal F Merchant director 2230 E. IMPERIAL HIGHWAY, EL SEGUNDO CA 90245
Geoffrey Y Yang director 3000 SAND HILL ROAD, 2-290, MENLO PARK CA 94025
Di Piazza Samuel A Jr. director 100 BROOKWOOD PLACE, BIRMINGHAM AL 35209
Paul A Gould director 711 FIFTH AVENUE, 9TH FLOOR, NEW YORK NY 10022
Robert R Bennett director 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
David Leavy officer: Chief Communications Officer C/O WARNER BROS. DISCOVERY, INC., 230 PARK AVENUE SOUTH, NEW YORK NY 10003
David Zaslav director, officer: Chief Executive Officer & Pres C/O WARNER BROS. DISCOVERY, INC., 230 PARK AVENUE SOUTH, NEW YORK NY 10003
Li Haslett Chen director C/O WARNER BROS. DISCOVERY, INC., 230 PARK AVENUE SOUTH, NEW YORK NY 10003
Debra L Lee director C/O BLACK ENTERTAINMENT, 1 BET PLZ. 1900W PLACE N.W., WASHINGTON DC 20018
Paula A Price director ONE CVS DRIVE, WOONSOCKET RI 02895