WBDCAUTIOUS

WBD Return on Equity (ROE) Analysis

-5.0%

Updated 469h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from the money shareholders have invested, with a negative value meaning the company is losing money relative to that equity.

Sector Performance

12th percentile

WBD

-5.0%

Sector Median

13.8%

Sector Avg

31.9%

Prior Period

2.0%(May 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from the money shareholders have invested, with a negative value meaning the company is losing money relative to that equity.

WBD’s current ROE of -5.0% sits well below the sector median of 13.5%, placing it in the 12th percentile among peers — indicating that nearly 9 out of 10 competitors perform better on this metric. The year-over-year change and eight-quarter trend are not available, but the quarter-over-quarter deterioration of -350.0% shows a dramatic swing from the prior quarter’s 2.0% ROE into negative territory. This combination of a deeply negative level and a sharply worsening trend implies elevated investment risk, as the company is not only failing to generate returns for shareholders but is actively destroying equity value at an accelerating pace. This metric directly supports the overall CAUTIOUS verdict — a stock with a negative and quickly declining ROE warrants caution rather than confidence.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about WBD?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are WBD's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%), SNOW (-54.9%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.