Warner Music Group (WMG)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 823,000 | 790,000 | 714,000 | 609,000 | -229,000 |
| Total assets | US$ in thousands | 9,155,000 | 8,545,000 | 7,828,000 | 7,211,000 | 6,410,000 |
| Operating ROA | 8.99% | 9.25% | 9.12% | 8.45% | -3.57% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $823,000K ÷ $9,155,000K
= 8.99%
Warner Music Group's operating return on assets (operating ROA) has shown a generally positive trend over the past five years. The company's operating ROA increased from -3.57% in September 2020 to 8.99% in September 2024. This improvement indicates that Warner Music Group has been more effective in generating profits from its assets over the years.
However, it is worth noting that there was a slight dip in operating ROA in September 2021 compared to the previous year. Despite this temporary setback, the company managed to bounce back and achieve higher operating ROA figures in the subsequent years, reaching a peak of 9.25% in September 2023.
Overall, Warner Music Group's operating ROA performance demonstrates a positive trajectory, reflecting the company's ability to efficiently utilize its assets to generate operating profits. This trend suggests that management has been successful in improving the company's operational efficiency and profitability over the years.
Peer comparison
Sep 30, 2024