Warner Music Group (BSP:W1MG34) ROCE % : 12.05% (As of Mar. 2024)

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What is Warner Music Group ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Warner Music Group's annualized ROCE % for the quarter that ended in Mar. 2024 was 12.05%.

Warner Music Group ROCE % Historical Data

The historical data trend for Warner Music Group's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Warner Music Group ROCE % Chart

Warner Music Group Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

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13.28

-10.44

14.75

20.24

15.40

Warner Music Group Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															7.71	16.34	20.28	23.63	12.05

Warner Music Group ROCE % Calculation

Warner Music Group's annualized ROCE % for the fiscal year that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	3704.025	/	( ( (41046.901 - 17660.445)	+	(42201.192 - 17478.059) )	/ 2 )
	=	3704.025	/	( (23386.456	+	24723.133)	/ 2 )
	=	3704.025	/	24054.7945
	=	15.40 %

Warner Music Group's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	3107.396	/	( ( (44054.102 - 18349.751)	+	(43478.634 - 17593.633) )	/ 2 )
	=	3107.396	/	( ( 25704.351	+	25885.001 )	/ 2 )
	=	3107.396	/	25794.676
	=	12.05 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Warner Music Group (BSP:W1MG34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Warner Music Group ROCE % Related Terms

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Warner Music Group (BSP:W1MG34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Warner Music Group Corp (BSP:W1MG34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

WMG:USA WA4:Germany

Address

1633 Broadway, New York, NY, USA, 10019

Website

https://www.wmg.com

Warner Music Group is the third largest of the three major global record labels, with Vivendi's Universal Music in first and Sony Music in second. Warner's larger segment, recorded music, consists of iconic labels like Atlantic Records, Warner Records, and Parlophone Records and popular artists such as Ed Sheeran, Cardi B, Dua Lipa, and Blake Shelton. Warner Chappell, the firm's publishing arm, is the home to over 65,000 composers and songwriters with over 1 million copyrights represented. Warner is controlled by Access Industries, which owns an 84% economic interest and 99% of voting rights.

Warner Music Group (BSP:W1MG34) Headlines

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