Warner Music Group (WMG)
Pretax margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 558,000 | 600,000 | 736,000 | 453,000 | -452,000 |
| Revenue | US$ in thousands | 6,390,000 | 5,879,000 | 6,088,000 | 5,276,000 | 4,463,000 |
| Pretax margin | 8.73% | 10.21% | 12.09% | 8.59% | -10.13% |
September 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $558,000K ÷ $6,390,000K
= 8.73%
Warner Music Group's pretax margin has shown fluctuations over the past five years. The company's pretax margin declined to -10.13% in Sep 2020, indicating losses before tax. However, the company demonstrated a significant recovery in profitability in the subsequent years, with pretax margins of 8.59% in Sep 2021, 12.09% in Sep 2022, and 10.21% in Sep 2023. In the most recent financial period ending in Sep 2024, the pretax margin settled at 8.73%.
Overall, while the company managed to turn around its financial performance from a loss-making position in 2020 to positive margins in the following years, the slight decrease in pretax margin from 2023 to 2024 may raise some concerns about the company's ability to maintain its profitability levels. Continued monitoring of the company's operational efficiency and cost management strategies will be essential to ensure sustained profitability in the future.
Peer comparison
Sep 30, 2024