Warner Music Group (WMG)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 433,000 | 463,000 | 307,000 | 281,000 | 252,000 | 270,000 | 152,000 | 156,000 | 154,000 | 153,000 | 31,000 | 81,000 | 57,000 | 16,000 | -63,000 | -38,000 | -306,000 | -190,000 | -289,000 | -152,000 |
| 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% | — | — | — | — | — | — |
March 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $529,000K ÷ $433,000K
= 122.17%
Warner Music Group has demonstrated significant volatility in its return on equity (ROE) over the past several quarters. The ROE has fluctuated widely, ranging from negative values to extremely high positive values. In the most recent quarter, ending March 31, 2024, the ROE stood at an impressive 122.17%, indicating the company's ability to generate strong returns for its shareholders.
However, it is important to note the substantial fluctuations in ROE in the preceding quarters, with values exceeding 100% and even reaching as high as 980.65% in the third quarter of 2021. Such extreme variations in ROE suggest potential irregularities in the company's financial performance and may warrant further investigation into the factors driving these fluctuations.
Overall, while the recent ROE of 122.17% is promising for Warner Music Group, investors and stakeholders should remain vigilant and monitor the company's financial performance closely to better understand the sustainability and consistency of its returns.
Peer comparison
Mar 31, 2024