How do you interpret reportable legal entities — accrued royalties current?

An increase typically correlates with higher revenue and music consumption; a decrease may reflect lower activity or faster payment cycles.

How does reportable legal entities — accrued royalties current compare across companies?

Highly specific to the music and entertainment industry; a key performance indicator for royalty-based business models.

Warner Music Group WMG Reportable Legal Entities — Accrued Royalties Current

Discontinued — last reported Q2 '18

Similar metrics at other companies

CDWReportable Legal Entities — Accrued Liabilities Current

$263.4M+18.5%

GSATReportable Legal Entities — Accrued Liabilities Current

$13.73M-8.1%

WTWReportable Legal Entities — Deferred Revenueand Accrued Liabilities Current

$0-100%

ARMKReportable Legal Entities — Accrued Liabilities Current

$863.27M+5.3%

ARReportable Legal Entities — Accrued Liabilities Current

$349.65M+2.5%

APTVReportable Legal Entities — Accrued Liabilities Current

$1.06B-11.7%

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

FCF margin10.2%-1.8pp

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

Reported directly by Warner Music Group in its filing.

Tagged under the XBRL concept us-gaap:AccruedRoyaltiesCurrent.

The official record: Warner Music Group’s 10-Q, filed May 7, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does reportable legal entities — accrued royalties current mean?: The amount of money the company owes to artists and songwriters for music usage.
How do you interpret reportable legal entities — accrued royalties current?: An increase typically correlates with higher revenue and music consumption; a decrease may reflect lower activity or faster payment cycles.
How does reportable legal entities — accrued royalties current compare across companies?: Highly specific to the music and entertainment industry; a key performance indicator for royalty-based business models.