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