Warner Music Group (WMG)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 435,000 | 546,000 | 529,000 | 467,000 | 430,000 | 426,000 | 428,000 | 486,000 | 551,000 | 431,000 | 368,000 | 393,000 | 304,000 | 275,000 | -306,000 | -497,000 | -475,000 | -384,000 | 149,000 | 290,000 |
| 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 |
| ROA | 4.75% | 6.18% | 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% |
September 30, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $435,000K ÷ $9,155,000K
= 4.75%
Warner Music Group's return on assets (ROA) has shown some fluctuation over the past few quarters. In the most recent quarter as of September 30, 2024, the ROA stood at 4.75%, which is lower than the previous quarter's 6.18% but still within a reasonable range. Looking further back, the ROA has experienced some variability, with peaks around 7% and troughs around -7%.
It is noteworthy that the ROA dipped significantly in the first quarter of 2021, reaching -4.48% and continued to drop in subsequent quarters, hitting -7.41% by the end of 2020. However, the company made a recovery in the first half of 2021, gradually improving its ROA to positive levels.
Overall, Warner Music Group's ROA seems to have stabilized in recent quarters, indicating that the company is effectively generating profits relative to its total assets. Management should continue monitoring and managing the efficiency of asset utilization to maintain and improve ROA in the future.
Peer comparison
Sep 30, 2024