How do you interpret reportable legal entities — gain on sale of investments?

A consistent gain indicates effective treasury management or successful venture-style investments in the music industry.

How does reportable legal entities — gain on sale of investments compare across companies?

Common for companies with strategic investment arms; peers report this as part of non-operating income.

Warner Music Group WMG Reportable Legal Entities — Gain On Sale Of Investments

Discontinued — last reported Q4 '14

Similar metrics at other companies

CLHReportable Legal Entities — Gain Loss On Sale Of Business

-$77K-101%

LAMRReportable Legal Entities — Gain Loss On Disposition Of Assets1

-$8.67M-936%

MUSAReportable Legal Entities — Gain Loss On Sale Of Property Plant Equipment

-$500K-600%

EXPEReportable Legal Entities — Gain Loss On Sale Of Business

$127.2M—

TROWReportable Legal Entities — Net Gains Losses Recognizedon Investments

-$900K-101%

WTFCReportable Legal Entities — Available For Sale Securities Gross Realized Gain Loss Net

$0—

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:GainOnSaleOfInvestments.

The official record: Warner Music Group’s 10-K, filed December 8, 2016, on SEC EDGAR. View the filing →

Questions, answered.

What does reportable legal entities — gain on sale of investments mean?: Profit earned from selling investment assets.
How do you interpret reportable legal entities — gain on sale of investments?: A consistent gain indicates effective treasury management or successful venture-style investments in the music industry.
How does reportable legal entities — gain on sale of investments compare across companies?: Common for companies with strategic investment arms; peers report this as part of non-operating income.