Warner Music Return On Asset vs. Total Debt
| W1MG34 Stock | 48.38 0.98 2.07% |
For Warner Music profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Warner Music to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Warner Music Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Warner Music's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Warner Music Group over time as well as its relative position and ranking within its peers.
Warner |
Warner Music Group Total Debt vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Warner Music's current stock value. Our valuation model uses many indicators to compare Warner Music value to that of its competitors to determine the firm's financial worth. Warner Music Group is rated first in return on asset category among its peers. It is rated first in total debt category among its peers making up about 68,602,941,176 of Total Debt per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Warner Music by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Warner Music's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Warner Total Debt vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Warner Music |
| = | 0.0544 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Warner Music |
| = | 3.73 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Warner Total Debt vs Competition
Warner Music Group is rated first in total debt category among its peers. Total debt of Entertainment industry is at this time estimated at about 4.18 Billion. Warner Music totals roughly 3.73 Billion in total debt claiming about 89% of equities under Entertainment industry.
Warner Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Warner Music. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Warner Music position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Warner Music's important profitability drivers and their relationship over time.
Use Warner Music in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Warner Music position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Warner Music will appreciate offsetting losses from the drop in the long position's value.Warner Music Pair Trading
Warner Music Group Pair Trading Analysis
The ability to find closely correlated positions to Warner Music could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Warner Music when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Warner Music - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Warner Music Group to buy it.
The correlation of Warner Music is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Warner Music moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Warner Music Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Warner Music can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Warner Music position
In addition to having Warner Music in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Warner Stock
When determining whether Warner Music Group is a strong investment it is important to analyze Warner Music's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Warner Music's future performance. For an informed investment choice regarding Warner Stock, refer to the following important reports:Check out Your Current Watchlist. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
To fully project Warner Music's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Warner Music Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Warner Music's income statement, its balance sheet, and the statement of cash flows.