5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Universal Music Group NV's 5-Year ROIIC % for the quarter that ended in Dec. 2023 was 7.51%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Universal Music Group NV's 5-Year ROIIC % or its related term are showing as below:
XAMS:UMG's 5-Year ROIIC % is ranked better than 62.53% of 950
companies
in the Media - Diversified industry
Industry Median: 0.625
vs XAMS:UMG: 7.51
Universal Music Group NV 5-Year ROIIC % Historical Data
* 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 Universal Music Group NV's 5-Year ROIIC %
For the Entertainment subindustry, Universal Music Group NV's 5-Year ROIIC %, along with its competitors' market caps and 5-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.
Universal Music Group NV's 5-Year ROIIC % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's 5-Year ROIIC % falls into.
Universal Music Group NV 5-Year ROIIC % Calculation
Universal Music Group NV's 5-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 1035.5329 (Dec. 2023) - 665.7373 (Dec. 2018) )
/
( 10318 (Dec. 2023) - 5393 (Dec. 2018) )
=
369.7956
/
4925
=
7.51%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-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.
Universal Music Group NV (XAMS:UMG) 5-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.
Universal Music Group NV 5-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Universal Music Group NV's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Universal Music is the largest of the three major record companies. Recorded music accounts for most of the firm's revenue, with the segment housing more than a dozen record labels, including notable names like Interscope, Capital Music, Motown Records, and Def Jam. Some of the most successful current artists signed to record deals with Universal include Taylor Swift, Drake, The Weeknd, and Morgan Wallen. Most of Universal's remaining revenue comes from its publishing segment, which generates revenue for songwriters and composers, including some of Universal's recording artists as well as songwriters and composers who do not record music themselves or are attached to other labels. Universal's publishing group has nearly 4.5 million owned or administered titles in its catalog.
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