Warner Music Group (WMG)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 10.74% | 11.13% | 10.48% | 10.88% | 11.08% | 12.43% | 13.50% | 11.84% | 12.12% | 12.13% | 11.35% | 11.81% | 0.25% | -4.14% | -5.13% | -6.68% | 4.28% | 8.04% | 7.96% | 7.81% |
| Operating profit margin | 14.06% | 14.37% | 13.37% | 12.58% | 12.03% | 12.72% | 11.87% | 11.15% | 11.63% | 11.63% | 11.51% | 11.85% | 0.04% | -4.36% | -5.13% | -6.46% | 4.50% | 8.26% | 7.96% | 7.81% |
| Pretax margin | 11.58% | 10.81% | 10.16% | 9.76% | 9.88% | 11.07% | 12.23% | 10.29% | 9.42% | 10.38% | 8.56% | 7.56% | -4.02% | -9.78% | -10.13% | -9.35% | 1.18% | 5.61% | 5.92% | 5.38% |
| Net profit margin | 8.51% | 7.64% | 7.28% | 7.23% | 7.38% | 8.35% | 9.16% | 7.38% | 6.42% | 7.01% | 5.74% | 5.46% | -6.48% | -10.94% | -10.64% | -8.61% | 3.30% | 6.40% | 5.72% | 3.46% |
Warner Music Group's profitability ratios have displayed some fluctuations over the past few quarters. The gross profit margin has been on a declining trend, decreasing from 12.43% in December 2022 to 10.74% in March 2024. This indicates a decrease in the company's ability to generate profit from its revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown some variability, with a slight increase in March 2024 compared to December 2023. However, the overall trend has been relatively stable, hovering around the 11-14% range. This suggests that Warner Music Group has been able to effectively manage its operating expenses to generate profits at a consistent level.
The pretax margin has fluctuated significantly, ranging from negative figures to double-digit percentages over the analyzed period. This indicates fluctuations in the company's ability to generate profit before accounting for taxes, possibly influenced by changes in revenue and expenses.
The net profit margin, which reflects the company's profitability after all expenses have been deducted, has shown a similar trend of fluctuation. While there have been periods of negative margins, Warner Music Group has generally been able to maintain positive net profit margins, albeit with some variations.
Overall, Warner Music Group's profitability ratios suggest a mixed performance, with fluctuations in margins indicating changes in the company's ability to generate profits relative to its revenue and expenses. Monitoring these ratios over time can provide insight into the company's financial health and performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 6.06% | 5.19% | 5.03% | 5.23% | 5.34% | 5.98% | 7.04% | 5.60% | 4.73% | 4.90% | 4.22% | 3.91% | -4.48% | -7.16% | -7.41% | -6.25% | 2.43% | 4.59% | 4.25% | 2.55% |
| Return on total capital | 19.79% | 19.68% | 18.50% | 17.36% | 16.47% | 17.55% | 18.38% | 16.52% | 16.75% | 16.30% | 18.03% | 17.31% | 0.06% | -5.82% | -7.53% | -9.72% | 7.58% | 13.37% | 13.26% | 12.02% |
| Return on equity (ROE) | 122.17% | 100.86% | 140.07% | 151.60% | 169.84% | 180.00% | 362.50% | 276.28% | 238.96% | 256.86% | 980.65% | 339.51% | -536.84% | -3,106.25% | — | — | — | — | — | — |
Warner Music Group has shown consistent improvement in its profitability ratios over the recent quarters. The Operating Return on Assets (Operating ROA) has been steadily increasing, indicating the company's ability to generate profits from its operating activities efficiently. This implies that for every dollar of assets, the company is generating a higher return.
Similarly, the Return on Assets (ROA) has also shown an upward trend, reflecting an improvement in the company's overall ability to generate profits from its assets. The upward trajectory suggests that Warner Music Group is effectively utilizing its assets to generate profits for its shareholders.
The Return on Total Capital and Return on Equity (ROE) ratios have also exhibited a positive trend, indicating the company's ability to create value for its investors. The high ROE values suggest that Warner Music Group is efficiently utilizing shareholder equity to generate profits, which is a positive sign for investors.
Overall, the improving profitability ratios of Warner Music Group demonstrate its strong financial performance and efficiency in utilizing assets and capital to generate returns for its stakeholders.