Warner Music Group (WMG)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 790,000 | 714,000 | 609,000 | -229,000 | 356,000 |
| Total assets | US$ in thousands | 8,545,000 | 7,828,000 | 7,211,000 | 6,410,000 | 6,017,000 |
| Operating ROA | 9.25% | 9.12% | 8.45% | -3.57% | 5.92% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $790,000K ÷ $8,545,000K
= 9.25%
Warner Music Group's operating return on assets (ROA) has shown a generally positive trend over the past five years, with figures of 9.25%, 9.12%, 8.45%, -3.57%, and 5.92% for the years ended September 30 in 2023, 2022, 2021, 2020, and 2019, respectively. This metric indicates the company's efficiency in generating operating income relative to its total assets. The consistent improvement in operating ROA from 2019 to 2021 reflects the company's ability to generate increasing operating income from its asset base. However, the sharp decline in 2020, with a negative figure, may indicate some challenges faced by Warner Music Group in that particular year. Overall, the positive trend in the recent years suggests that the company has been effectively utilizing its assets to generate operating profits, which is a positive signal for investors.
Peer comparison
Sep 30, 2023