Warner Music Group (WMG)
Profitability ratios
Return on sales
Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
---|---|---|---|---|---|
Gross profit margin | 11.82% | 10.05% | 14.50% | 11.07% | -5.13% |
Operating profit margin | 12.88% | 13.44% | 11.73% | 11.54% | -5.13% |
Pretax margin | 8.73% | 10.21% | 12.09% | 8.59% | -10.13% |
Net profit margin | 6.81% | 7.31% | 9.05% | 5.76% | -10.64% |
Warner Music Group's profitability ratios have shown fluctuating trends over the past five years. The gross profit margin has generally increased from negative territory in 2020 to 11.82% in 2024, indicating an improvement in the efficiency of production and distribution. The operating profit margin, though slightly decreased in 2024 compared to the previous year, has remained relatively stable around 11-13%, reflecting the company's ability to control operating expenses effectively.
The pretax margin has shown a gradual decline from 12.09% in 2022 to 8.73% in 2024, possibly due to higher non-operating expenses or lower profitability before taxes. Similarly, the net profit margin has also decreased over the same period, suggesting that after-tax profitability has been impacted by various factors. Overall, Warner Music Group's profitability ratios demonstrate both positive and challenging aspects of their financial performance in recent years.
Return on investment
Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
---|---|---|---|---|---|
Operating return on assets (Operating ROA) | 8.99% | 9.25% | 9.12% | 8.45% | -3.57% |
Return on assets (ROA) | 4.75% | 5.03% | 7.04% | 4.22% | -7.41% |
Return on total capital | 18.16% | 18.50% | 18.38% | 18.03% | -7.53% |
Return on equity (ROE) | 83.98% | 140.07% | 362.50% | 980.65% | — |
Warner Music Group's profitability ratios have shown improvement over the past five years. The Operating Return on Assets (Operating ROA) has remained relatively stable, ranging from 8.45% in 2021 to 9.25% in 2023, demonstrating efficient management in generating profits from its assets.
The Return on Assets (ROA) has also shown positive trends, with a gradual increase from 4.22% in 2021 to 5.03% in 2023, indicating the company's ability to generate profits relative to its total assets.
Furthermore, the Return on Total Capital has consistently improved, reaching 18.50% in 2023, reflecting the company's effective utilization of both debt and equity to generate returns.
The most notable improvement is seen in the Return on Equity (ROE), which surged from 83.98% in 2024 to 980.65% in 2021. This signifies that shareholders' equity has been highly profitable for the company in recent years, showcasing strong financial performance and value creation for its shareholders.