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Warner Bros.Discovery Financial Strength

: 3 (As of Jun. 2022)
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Warner Bros.Discovery has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

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 Jun. 2022 was 1.34. As of today, Warner Bros.Discovery's Altman Z-Score is 0.38.


Competitive Comparison

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 Financial Strength Distribution

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 Jun. 2022 was $-511 Mil. Its Operating Income for the months ended in Jun. 2022 was $-2,602 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $51,388 Mil.

Warner Bros.Discovery's Interest Coverage for the quarter that ended in Jun. 2022 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 Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1097 + 51388) / 39308
=1.34

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 0.38, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.38 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 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


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 Business Description

Warner Bros.Discovery logo
Address
230 Park Avenue South, New York, NY, USA, 10003
Discovery is the one of the largest global media providers with over 2 billion cumulative subscribers in over 220 countries. Its three traditional networks (Discovery, TLC, and Animal Planet) each reach over 84 million U.S. households and more than 200 million international subscribers. The top two networks (HGTV and Food Network) acquired in the Scripps transaction are available in more than 87 million households in the U.S. The international segment consists of national and pan-regional networks over 294 unique distribution feeds in 50 languages.
Executives
Zeiler Gerhard officer: President, International ONE TIME WARNER CENTER NEW YORK NY 10019
Chen Li Haslett director C/O DISCOVERY, INC. 230 PARK AVENUE SOUTH NEW YORK NY 10003
Advance/newhouse Partnership director 5015 CAMPUSWOOD DR. EAST SYRACUSE NY 13057
Newhouse Steven O director 6350 COURT STREET EAST SYRACUSE NY 13057-1211
Merchant Fazal F director 2230 E. IMPERIAL HIGHWAY EL SEGUNDO CA 90245
Fisher Richard W director
Di Piazza Samuel A Jr. director 100 BROOKWOOD PLACE BIRMINGHAM AL 35209
Yang Geoffrey Y director 3000 SAND HILL ROAD, 2-290 MENLO PARK CA 94025
Price Paula A director ONE CVS DRIVE WOONSOCKET RI 02895
Lee Debra L director C/O BLACK ENTERTAINMENT 1 BET PLZ. 1900W PLACE N.W. WASHINGTON DC 20018
Johnson Robert L director C/O RLJ COMPANIES 3 BETHESDA METRO CENTER, SUITE 1000 BETHESDA MD 20814
Locke Lori C. officer: Chief Accounting Officer C/O DISCOVERY, INC. 230 PARK AVENUE SOUTH NEW YORK NY 10003
Faricy Peter officer: CEO, Global Direct to Consumer C/O DISCOVERY, INC. 8403 COLESVILLE ROAD SILVER SPRING MD 20910
Lowe Kenneth W director
Advance Publications, Inc director, 10 percent owner 950 FINGERBOARD ROAD STATEN ISLAND NY 10305

Warner Bros.Discovery Headlines

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