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