Warner Music Group (WMG)
Pretax margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 600,000 | 736,000 | 453,000 | -452,000 | 265,000 |
| Revenue | US$ in thousands | 5,879,000 | 6,088,000 | 5,276,000 | 4,463,000 | 4,475,000 |
| Pretax margin | 10.21% | 12.09% | 8.59% | -10.13% | 5.92% |
September 30, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $600,000K ÷ $5,879,000K
= 10.21%
Warner Music Group's pretax margin has displayed a fluctuating trend over the past five years. In 2023, the pretax margin stood at 10.21%, showing a slight decrease from the previous year's level of 12.09%. Despite this decline, the company still maintained a relatively healthy margin compared to 2021 when it was 8.59%.
It is noteworthy that in 2020, Warner Music Group experienced a negative pretax margin of -10.13%, indicating that the company incurred losses before taxes during that period. However, the company managed to significantly improve its performance in 2021 and 2022, achieving positive pretax margins.
Overall, while the recent slight dip in pretax margin may warrant further investigation, Warner Music Group has generally shown the ability to generate profits before taxes in the past few years.
Peer comparison
Sep 30, 2023