Warner Music Group (WMG)
Debt-to-equity 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-equity ratio | 12.91 | 24.55 | 107.94 | — | — |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,964,000K ÷ $307,000K
= 12.91
The debt-to-equity ratio of Warner Music Group has been fluctuating over the past five years. In 2019, the ratio was not available, but by 2020, it decreased to 107.94, indicating a significantly high level of debt relative to equity. However, there was a substantial improvement in 2021, with the ratio decreasing to 24.55, suggesting better balance between debt and equity. In the most recent period ending in September 2023, the debt-to-equity ratio further decreased to 12.91, signaling a lower reliance on debt financing compared to equity. This trend indicates that Warner Music Group has been actively managing its debt levels, which can positively impact the company's financial stability and risk profile. It's important to continue monitoring this ratio to assess the company's leverage position and financial health.
Peer comparison
Sep 30, 2023