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Warner Music Group WMG Return on invested capital

Return on invested capital at other companies

Warner Bros. Discovery, Inc. logo
Warner Bros. Discovery, Inc.WBD
-5.3%-2.4pp

Other financials

Income statement

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Revenue$1.7B+16.7%
Gross profit$802.0M+15.7%
Operating income$264.0M+57.1%
Net income$183.0M+408%

Balance sheet

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Cash & equivalents$741.0M+16.3%
Total debt$895.0M-79.0%
Total equity$738.0M+30.2%
Total assets$10.6B+10.9%

Cash flow

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Operating cash flow$126.0M+82.6%
CapEx$27.0M-25.0%
Free cash flow$99.0M+200%

Valuation

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Market cap$14.69B-18.2%
Enterprise value$14.85B-32.3%
P/E32.5×-7.2×
P/S2.1×-0.8×

Profitability

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Gross margin45.8%-1.0pp
Operating margin12.1%+0.6pp
Net margin6.3%-0.8pp

Returns & leverage

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Return on equity69.3%-21.1pp
Debt / equity1.2×-6.3×
Current ratio0.7×+0.1×

Where this comes from

Calculated from Warner Music Group’s reported figures.

Based on trailing twelve months.

The official record: Warner Music Group’s 10-Q, filed May 7, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Warner Music Group's return on invested capital?
Warner Music Group (WMG) reported return on invested capital of 25.5% in Q1 2026.
How has Warner Music Group's return on invested capital changed year-over-year?
Warner Music Group's return on invested capital increased by 91.5% year-over-year, from 13.3% to 25.5%.
What is the long-term trend for Warner Music Group's return on invested capital?
Over 4 years (2021 to 2025), Warner Music Group's return on invested capital has grown at a 48.2% compound annual growth rate (CAGR), from 12.5% to 60.2%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.