Warner Music Group (WMG)
Debt-to-capital ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 2,974,000 | 3,006,000 |
| Total stockholders’ equity | US$ in thousands | 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 | -289,000 | -152,000 |
| Debt-to-capital ratio | 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 | 1.11 | 1.05 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,984,000K ÷ ($3,984,000K + $433,000K)
= 0.90
Warner Music Group's debt-to-capital ratio, as indicated in the table, has shown a slight fluctuation over the past few quarters. The ratio has ranged between 0.90 and 1.11 over the period from December 2019 to March 2024.
A debt-to-capital ratio of 0.90 to 1.11 indicates that Warner Music Group has been relying more on debt financing in its capital structure compared to equity financing. This suggests that a significant portion of the company's capital structure is funded by debt, which could potentially increase financial risk due to interest payments and repayment obligations.
The slight variations in the ratio over the period may reflect changes in the company's borrowing activities, repayment schedules, and overall capital management strategy. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's leverage and financial stability. Further analysis of the company's debt levels, cash flows, and overall financial health would provide a more comprehensive understanding of Warner Music Group's financial position.
Peer comparison
Mar 31, 2024