Warner Music Group (WMG)
Debt-to-capital ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,014,000 | 3,978,000 | 3,984,000 | 4,004,000 | 3,964,000 | 3,988,000 | 3,986,000 | 3,946,000 | 3,732,000 | 3,785,000 | 3,829,000 | 3,846,000 | 3,346,000 | 3,367,000 | 3,354,000 | 3,387,000 | 3,104,000 | 3,000,000 | 2,983,000 | 2,988,000 |
| Total stockholders’ equity | US$ in thousands | 518,000 | 483,000 | 433,000 | 463,000 | 307,000 | 281,000 | 252,000 | 270,000 | 152,000 | 156,000 | 154,000 | 153,000 | 31,000 | 81,000 | 57,000 | 16,000 | -63,000 | -38,000 | -306,000 | -190,000 |
| Debt-to-capital ratio | 0.89 | 0.89 | 0.90 | 0.90 | 0.93 | 0.93 | 0.94 | 0.94 | 0.96 | 0.96 | 0.96 | 0.96 | 0.99 | 0.98 | 0.98 | 1.00 | 1.02 | 1.01 | 1.11 | 1.07 |
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 exhibited a slightly decreasing trend over the most recent quarters, as seen from the data provided. The ratio stood at 0.89 in September 2024 and June 2024, slightly higher than the ratio of 0.90 observed in March 2024 and December 2023. This downward trend in the debt-to-capital ratio is indicative of potential improved solvency and financial stability for the company.
However, it is important to note that the debt-to-capital ratio has shown some fluctuation over the period in question, with ratios ranging from 0.89 to 1.11. This indicates that Warner Music Group has been utilizing varying levels of debt to finance its operations and investments relative to its capital structure.
Overall, the debt-to-capital ratio provides insights into the extent to which Warner Music Group relies on debt financing as opposed to equity. A decreasing trend in this ratio suggests a potential decrease in financial risk associated with high levels of debt, while fluctuations could signify shifts in the company's capital structure and financing strategies.
Peer comparison
Sep 30, 2024