Universal Music Group NV (XAMS:UMG) EBIT : €1,834 Mil (TTM As of Dec. 2023)

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What is Universal Music Group NV EBIT?

Universal Music Group NV's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2023 was €928 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was €1,834 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Universal Music Group NV's annualized ROC % for the quarter that ended in Dec. 2023 was 12.02%. Universal Music Group NV's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 383.87%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Universal Music Group NV's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 3.48%.

Universal Music Group NV EBIT Historical Data

The historical data trend for Universal Music Group NV's EBIT 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.

* Premium members only.

Universal Music Group NV EBIT Chart

Universal Music Group NV Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

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1,197.00

1,830.00

1,208.00

968.00

1,834.00

Universal Music Group NV Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
EBIT	Get a 7-Day Free Trial					588.00	216.00	752.00	906.00	928.00

Competitive Comparison of Universal Music Group NV's EBIT

For the Entertainment subindustry, Universal Music Group NV's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Universal Music Group NV's EV-to-EBIT Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Universal Music Group NV's EV-to-EBIT falls into.

Universal Music Group NV EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was €1,834 Mil.

Universal Music Group NV (XAMS:UMG) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

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

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	1640 * ( 1 - 26.64% )	/	( (9707	+	10318)	/ 2 )
=	1203.104	/	10012.5
=	12.02 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	12451	-	5099	-	( 542	-	max(0, 6216	-	3861	+	542	))
=	9707

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	13091	-	4984	-	( 110	-	max(0, 6267	-	4056	+	110	))
=	10318

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Universal Music Group NV's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1856	/	( ( (474 + max(-1881, 0))	+	(493 + max(-2217, 0)) )	/	2 )
=	1856	/	( ( 474	+	493 )	/	2 )
=	1856	/	483.5
=	383.87 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2069	+	204	+	1046)	-	(5099	+	0	+	101)
=	-1881

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1986	+	210	+	1490)	-	(4984	+	0	+	919)
=	-2217

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Universal Music Group NV's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	1834	/	52639.624
	=	3.48 %

Universal Music Group NV EBIT Related Terms

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Universal Music Group NV (XAMS:UMG) Business Description

Industry

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

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 Group is the largest of the three major global record labels with Sony Music in second and Warner Music in third. Universal's larger segment, recorded music, consists of iconic labels like Interscope, Capitol Music, Decca, EMI, and Motown and popular artists such as Drake, Taylor Swift, J Balvin, and Luke Bryan. Universal Music Publishing Group owns and administers almost 4 million compositions and is the second-largest music publisher behind Sony. Universal Music was spun out of Vivendi in September 2021, with 60% distributed to Vivendi shareholders, 20% to Tencent, 10% to Pershing Square Capital, and 10% remaining at Vivendi.

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