Warner Music Group (WMG)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 435,000 | 430,000 | 551,000 | 304,000 | -475,000 |
| Total stockholders’ equity | US$ in thousands | 518,000 | 307,000 | 152,000 | 31,000 | -63,000 |
| ROE | 83.98% | 140.07% | 362.50% | 980.65% | — |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $435,000K ÷ $518,000K
= 83.98%
Warner Music Group's return on equity (ROE) has shown a declining trend over the last five years. In September 2020, ROE was not available. However, from September 2021 to September 2024, ROE decreased from 980.65% to 83.98%. This substantial decline in ROE indicates a decrease in the company's profitability in generating returns for its shareholders' equity.
The significant decrease in ROE from 980.65% in 2021 to 83.98% in 2024 suggests that the company may be facing challenges in efficiently utilizing its equity to generate profits. It is important for investors and stakeholders to closely monitor this trend and assess the company's strategies to improve profitability and shareholder value in the future.
Peer comparison
Sep 30, 2024