Warner Music Group (WMG)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 256,000 | 152,000 |
| Total assets | US$ in thousands | 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 | 6,017,000 | 5,955,000 |
| 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% |
March 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $529,000K ÷ $8,731,000K
= 6.06%
Warner Music Group's Return on Assets (ROA) has fluctuated over the past few quarters, ranging from -7.41% in September 2020 to a high of 7.04% in September 2022. The ROA measures the company's ability to generate profits from its assets, with a higher percentage indicating more efficient asset utilization.
The recent ROA of 6.06% as of March 31, 2024, suggests that for every dollar of assets Warner Music Group holds, it generated a profit of $0.0606. This indicates relatively efficient asset management compared to previous quarters. However, it is essential to note that negative ROA figures in some periods (such as -7.41% in September 2020 and -4.48% in March 2021) indicate that the company was not effectively utilizing its assets to generate profits during those periods.
Overall, Warner Music Group's ROA performance has shown variability, with both positive and negative trends observed. It is essential for the company to focus on consistently improving its ROA to ensure efficient asset utilization and sustainable profitability in the long term.
Peer comparison
Mar 31, 2024