Warner Music Group (BSP:W1MG34) ROCE % : 7.02% (As of Sep. 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 Sep. 2024 was 7.02%.

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

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

ROCE %

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-10.44

14.75

20.24

15.40

15.68

Warner Music Group Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															20.28	23.63	12.05	16.77	7.02

Warner Music Group ROCE % Calculation

Warner Music Group's annualized ROCE % for the fiscal year that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2024 )		(A: Sep. 2023 )		(A: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2024 )		(A: Sep. 2023 )		(A: Sep. 2024 )
	=	4219.804	/	( ( (42201.192 - 17478.059)	+	(50698.559 - 21580.807) )	/ 2 )
	=	4219.804	/	( (24723.133	+	29117.752)	/ 2 )
	=	4219.804	/	26920.4425
	=	15.68 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	2015.76	/	( ( (47559.263 - 19244.535)	+	(50698.559 - 21580.807) )	/ 2 )
	=	2015.76	/	( ( 28314.728	+	29117.752 )	/ 2 )
	=	2015.76	/	28716.24
	=	7.02 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 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 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 WMG:Austria

Address

1633 Broadway, New York, NY, USA, 10019

Website

https://www.wmg.com

Warner Music is the third-largest of the three major record companies. Recorded music accounts for most of the firm's revenue, with the segment housing notable record labels including Atlantic Records, Warner Records, Elektra Records. Some of the most successful current artists signed to record deals with Warner include Ed Sheeran, Bruno Mars, Cardi B, and Dua Lipa. Warner's remaining revenue comes from its publishing business, where Warner Chappell represents more than 180,000 songwriters and composers, some of whom are also Warner recording artists but many of whom are not recording artists or are attached to other labels. Warner Chappel controls more than 1 million musical compositions. Access Industries controls 98% of Warner's voting rights, while holding a 72% economic interest.

Warner Music Group Headlines

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