Warner Music Group (WMG)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 307,000 | 152,000 | 31,000 | -63,000 | -289,000 |
| Debt-to-capital ratio | 0.93 | 0.96 | 0.99 | 1.02 | 1.11 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,964,000K ÷ ($3,964,000K + $307,000K)
= 0.93
Warner Music Group's debt-to-capital ratio has shown a downward trend over the past five years, indicating a decreasing reliance on debt financing relative to total capital employed in the business. The ratio decreased from 1.11 in 2019 to 0.93 in 2023. This suggests that the company has been gradually reducing its debt levels or increasing its equity financing. A lower debt-to-capital ratio can signify improved financial stability and a lower risk of default as the company is using less debt to fund its operations. It is important to continue monitoring this ratio to ensure sustainable financial health and efficient capital structure management.
Peer comparison
Sep 30, 2023