Universal Music Group NV (XAMS:UMG) ROCE % : 35.92% (As of Jun. 2024)

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What is Universal Music Group NV ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Universal Music Group NV's annualized ROCE % for the quarter that ended in Jun. 2024 was 35.92%.

Universal Music Group NV ROCE % Historical Data

The historical data trend for Universal Music Group NV's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Universal Music Group NV ROCE % Chart

Universal Music Group NV Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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25.74

32.59

18.26

16.38

30.71

Universal Music Group NV Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROCE %	Get a 7-Day Free Trial						6.29	24.76	31.92	28.42	35.92

Universal Music Group NV ROCE % Calculation

Universal Music Group NV's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	1834	/	( ( (11639 - 6520)	+	(13091 - 6267) )	/ 2 )
	=	1834	/	( (5119	+	6824)	/ 2 )
	=	1834	/	5971.5
	=	30.71 %

Universal Music Group NV's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	2656	/	( ( (13091 - 6267)	+	(15165 - 7200) )	/ 2 )
	=	2656	/	( ( 6824	+	7965 )	/ 2 )
	=	2656	/	7394.5
	=	35.92 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

Universal Music Group NV (XAMS:UMG) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Universal Music Group NV ROCE % Related Terms

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Universal Music Group NV Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Universal Music Group NV (XAMS:UMG) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

UNVGY:USA UMGNF:USA UMGa:UK 0VD:Germany UMG:Austria

Address

Gravelandseweg 80, Hilversum, NH, NLD, 1217 EW

Website

https://www.universalmusic.com

Universal Music is the largest of the three major record companies. Recorded music accounts for most of the firm's revenue, with the segment housing more than a dozen record labels, including notable names like Interscope, Capital Music, Motown Records, and Def Jam. Some of the most successful current artists signed to record deals with Universal include Taylor Swift, Drake, The Weeknd, and Morgan Wallen. Most of Universal's remaining revenue comes from its publishing segment, which generates revenue for songwriters and composers, including some of Universal's recording artists as well as songwriters and composers who do not record music themselves or are attached to other labels. Universal's publishing group has nearly 4.5 million owned or administered titles in its catalog.

Universal Music Group NV Headlines

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