Warner Music Group’s Return On Capital Employed Overview – Warner Music Gr (NASDAQ:WMG)

According to Benzinga Pro, during the fourth quarter, warner music group WMGMore earned $150 million, up 20.0% from the previous quarter. Warner Music Group also posted sales totaling $1.5 billion, up 4.54% from the third quarter. Warner Music Group’s revenue for the third quarter was $125 million, bringing total sales to his $1.43 billion.

What is ROCE?

Earnings data without context is unclear and can be difficult to make trading decisions for. Return on Capital Employed (ROCE) helps filter the signal from the noise by measuring the annual pre-tax return on the capital a business uses. In general, a higher ROCE indicates that the company is growing well, indicating higher earnings per share for him in the future. Warner Music Group’s ROCE for the fourth quarter was 0.89%.

Note that ROCE measures past performance and is not used as a predictive tool. It’s a good measure of a company’s recent performance, but it doesn’t take into account factors that could affect near-term earnings and sales.

ROCE is a powerful indicator for comparing the effectiveness of similar companies’ capital allocations. A relatively high ROCE indicates that Warner Music Group may be operating at a higher level of efficiency than others in the industry. If a company is highly profitable at its current level of capital, some of that money can be reinvested in more capital, generally leading to higher returns and ultimately his 1 Leads to earnings per share (EPS) growth.

Warner Music Group’s positive capital utilization of 0.89% suggests that management is allocating capital effectively. Effective capital allocation is a positive indicator that a company will achieve more lasting success and good long-term returns.

Analyst forecast

Warner Music Group reported earnings per share of $0.32 for the fourth quarter. This beat the analyst’s forecast of $0.13.

This article was generated by Benzinga’s automated content engine and reviewed by editors.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *