Warner Music Revenue vs. Return On Equity
| 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 Return On Equity vs. Revenue 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 revenue category among its peers. It is rated first in return on equity category among its peers . The ratio of Revenue to Return On Equity for Warner Music Group is about 2,736,477,115 . 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 Revenue vs. Competition
Warner Music Group is rated first in revenue category among its peers. Market size based on revenue of Entertainment industry is at this time estimated at about 10.42 Billion. Warner Music totals roughly 5.92 Billion in revenue claiming about 57% of equities under Entertainment industry.
Warner Return On Equity vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Warner Music |
| = | 5.92 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Warner Music |
| = | 2.16 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Warner Return On Equity Comparison
Warner Music is currently under evaluation in return on equity category among its peers.
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?
Run Fabricated Products Thematic Idea Now
Fabricated Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Fabricated Products theme has 11 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Fabricated Products Theme or any other thematic opportunities.
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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.