Warner Bros. Discovery, Inc. - — Earnings Quality Grade F
WBD · Communication Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 52 days, change +6 days YoY
AR growth 7.0% vs revenue growth -5.1%
Revenue -5.1%, CFFO -19.6%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 29.9% is >2x revenue growth -5.1%
SG&A/Gross Profit = 57.4%. Normal
Gross margin 44.0%, change +2.4pp. Stable
Cash Flow Quality
CFFO/NI = 5.94. Profits backed by cash
FCF $3.1B, FCF/NI = 4.25
Accruals ratio = -3.6%. Low accruals
Cash $4.6B covers only 14% of debt $32.6B
Balance Sheet Health
Goodwill+Intangibles $72.8B = 203% of equity. Over 50%
Interest coverage = 0.6x (<2x). Financial stress
Other assets 0.8% vs revenue -5.1%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -6% YoY. Normal
Manipulation Score
M-Score = -2.58 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10