Warner Music Group (WMG)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,014,000 | 3,964,000 | 3,732,000 | 3,346,000 | 3,104,000 |
| Total stockholders’ equity | US$ in thousands | 518,000 | 307,000 | 152,000 | 31,000 | -63,000 |
| Debt-to-capital ratio | 0.89 | 0.93 | 0.96 | 0.99 | 1.02 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,014,000K ÷ ($4,014,000K + $518,000K)
= 0.89
The debt-to-capital ratio of Warner Music Group has shown a declining trend over the past five years, decreasing from 1.02 in 2020 to 0.89 in 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments in relation to its total capital. A lower debt-to-capital ratio suggests a healthier financial position and lower financial risk for the company. Warner Music Group's management may have actively worked towards deleveraging and optimizing its capital structure, which can enhance long-term stability and profitability. Investors and stakeholders may view this trend positively as it reflects prudent financial management and improved financial health of the organization.
Peer comparison
Sep 30, 2024