Warner Music Group (WMG)
Debt-to-equity 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-equity ratio | 7.75 | 12.91 | 24.55 | 107.94 | — |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,014,000K ÷ $518,000K
= 7.75
The debt-to-equity ratio of Warner Music Group has exhibited a declining trend over the past five years, indicating an improvement in the company's capital structure.
In September 2020, the debt-to-equity ratio was not available, but by September 2021, it spiked significantly to 107.94, suggesting a heavy reliance on debt to finance operations compared to equity. However, in the subsequent years, the ratio decreased significantly, demonstrating a reduction in the company's debt burden relative to its equity position.
As of September 30, 2024, the debt-to-equity ratio stands at 7.75, reflecting a notable improvement from the previous year. This decline indicates a lower level of financial risk and potentially a stronger financial position, as the company has reduced its debt levels or increased its equity base. Overall, the downward trend in the debt-to-equity ratio suggests a more sustainable and balanced capital structure for Warner Music Group in recent years.
Peer comparison
Sep 30, 2024