Warner Music Group (WMG)
Operating return on assets (Operating ROA)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 874,000 | 879,000 | 790,000 | 741,000 | 698,000 | 740,000 | 714,000 | 651,000 | 667,000 | 652,000 | 609,000 | 597,000 | 2,000 | -198,000 | -229,000 | -288,000 | 203,000 | 374,000 | 356,000 | 343,000 |
| Total assets | US$ in thousands | 8,731,000 | 8,991,000 | 8,545,000 | 8,150,000 | 8,010,000 | 8,129,000 | 7,828,000 | 7,699,000 | 7,781,000 | 8,015,000 | 7,211,000 | 7,040,000 | 6,830,000 | 6,943,000 | 6,410,000 | 6,148,000 | 6,124,000 | 6,314,000 | 6,017,000 | 5,955,000 |
| Operating ROA | 10.01% | 9.78% | 9.25% | 9.09% | 8.71% | 9.10% | 9.12% | 8.46% | 8.57% | 8.13% | 8.45% | 8.48% | 0.03% | -2.85% | -3.57% | -4.68% | 3.31% | 5.92% | 5.92% | 5.76% |
March 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $874,000K ÷ $8,731,000K
= 10.01%
Warner Music Group's operating return on assets (operating ROA) has shown a generally positive trend over recent quarters, indicating improved operational efficiency and profitability. The operating ROA has ranged from -4.68% to 10.01% over the past 20 quarters. Notably, there was a sharp increase in the operating ROA from the negative range to around 8-10% in the most recent quarters, reflecting a significant turnaround in the company's operational performance.
This improvement in operating ROA suggests that Warner Music Group has been able to generate more operating income from its assets, which is a positive indicator of the company's ability to effectively utilize its resources to generate profits. However, it is worth noting that there were periods of negative operating ROA in the past, indicating challenges in generating profits from assets during those quarters.
Overall, the increasing trend in Warner Music Group's operating ROA signals a positive performance in terms of asset utilization and profitability in recent quarters, indicating potential operational improvements and efficiency gains within the company.
Peer comparison
Mar 31, 2024