1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year.
Warner Music Group's 1-Year ROIIC % for the quarter that ended in Sep. 2024 was 66.80%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Warner Music Group's 1-Year ROIIC % or its related term are showing as below:
WMG's 1-Year ROIIC % is ranked better than 80.06% of 1013
companies
in the Media - Diversified industry
Industry Median: 0.08
vs WMG: 66.80
Warner Music Group 1-Year ROIIC % Historical Data
The historical data trend for Warner Music Group's 1-Year ROIIC % 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.
Competitive Comparison of Warner Music Group's 1-Year ROIIC %
For the Entertainment subindustry, Warner Music Group's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Warner Music Group's 1-Year ROIIC % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Warner Music Group's 1-Year ROIIC % falls into.
Warner Music Group 1-Year ROIIC % Calculation
Warner Music Group's 1-Year ROIIC % for the quarter that ended in Sep. 2024 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( 769.8504 (Sep. 2024) - 568.7901 (Sep. 2023) )
/
( 6913 (Sep. 2024) - 6612 (Sep. 2023) )
=
201.0603
/
301
=
66.80%***
* 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.
** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Warner Music Group (NAS:WMG) 1-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Warner Music Group 1-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Warner Music Group's 1-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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