Warner Music Group (WMG)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 823,000 | 892,000 | 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 |
| Total assets | US$ in thousands | 9,155,000 | 8,830,000 | 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 |
| Operating ROA | 8.99% | 10.10% | 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% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $823,000K ÷ $9,155,000K
= 8.99%
Warner Music Group's operating return on assets (ROA) has shown fluctuations over the given time period. ROA indicates the company's efficiency in generating profits from its assets. From Q4 2019 to Q3 2020, the company experienced negative operating ROA, indicating a period of inefficiency in asset utilization. However, there is a significant improvement in Q4 2020 with an operating ROA of 3.31%, followed by a further increase in Q1 2021 to 5.92%.
The trend continued to improve in subsequent quarters with operating ROA ranging between 8.13% to 10.10%. This indicates a positive trend in utilizing assets to generate operating income efficiently. However, it is worth noting that there was a slight dip in Q3 2023 compared to the previous quarter. Overall, the recent quarters show a consistent performance in terms of operating ROA, reflecting the company's improved operational efficiency and profitability from its assets.
Peer comparison
Sep 30, 2024