WBD
Quality Rating
Warner Bros. Discovery, Inc. (WBD) is a global media and entertainment company operating in film production, television networks, and streaming services. This report assesses its Shariah compliance across financial ratios, business activities, ESG factors, and index inclusions. Key challenges include a high debt-to-market cap ratio of 105.76%, rendering it non-compliant under major standards despite passing income-related thresholds. Business activities in entertainment are generally permissible, with no identified non-compliant revenue, though content scrutiny is recommended. Overall, based on index exclusions and financial metrics, WBD is classified as non-compliant, with a B quality rating indicating moderate concerns primarily in debt management.
Purification Required
Moderate purification required - consider carefully
Index Inclusion
Not included in any major Shariah indices (S&P, MSCI, FTSE, DJIM)
Key Compliance Considerations
- Debt Ratio: 105.76% (exceeds AAOIFI's 30% threshold)
- High leverage from conventional financing post-mergers
- Potential qualitative issues in entertainment content
Debt Ratio
105.8%
Liquidity Ratio
10.9%
Interest Income Ratio
3.5%
Purification
3.45%