Warner Music Group (WMG)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,964,000 | 3,732,000 | 3,346,000 | 3,104,000 | 2,974,000 |
| Total assets | US$ in thousands | 8,545,000 | 7,828,000 | 7,211,000 | 6,410,000 | 6,017,000 |
| Debt-to-assets ratio | 0.46 | 0.48 | 0.46 | 0.48 | 0.49 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,964,000K ÷ $8,545,000K
= 0.46
Warner Music Group's debt-to-assets ratio has exhibited relatively stable trends over the past five years. The ratio ranged between 0.46 to 0.49 during this period, indicating that the company's debt level in relation to its total assets remained consistent.
A debt-to-assets ratio of 0.46 to 0.49 suggests that Warner Music Group finances approximately 46% to 49% of its assets through debt, while the remaining percentage is funded by equity. This indicates that the company relies moderately on debt financing, with a significant portion of its assets being financed through equity.
A decreasing trend in the ratio could signify that Warner Music Group is progressively using less debt to finance its operations and investments, potentially indicating a more conservative financial strategy. Conversely, an increasing trend could imply higher financial leverage and risk for the company.
Overall, Warner Music Group's debt-to-assets ratio provides insights into the company's capital structure and financial risk profile, highlighting its reliance on debt financing to support its business operations and growth initiatives.
Peer comparison
Sep 30, 2023