Warner Music Group (WMG)
Debt-to-equity 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-equity ratio | 9.20 | 8.65 | 12.91 | 14.19 | 15.82 | 14.61 | 24.55 | 24.26 | 24.86 | 25.14 | 107.94 | 41.57 | 58.84 | 211.69 | — | — | — | — | — | — |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,984,000K ÷ $433,000K
= 9.20
The debt-to-equity ratio of Warner Music Group has exhibited fluctuations over the past few quarters. The ratio increased steadily from March 2021 to June 2021, reaching a peak of 107.94, indicating a significant reliance on debt financing during that period. However, from June 2021 to December 2021, there was a notable decrease in the ratio, suggesting a reduction in debt relative to equity.
In the most recent quarter (March 2024), the debt-to-equity ratio stands at 9.20, which is lower compared to the previous quarter. This decrease may signify a more balanced capital structure with less reliance on debt and potentially improved financial stability.
Overall, monitoring the trend of the debt-to-equity ratio is essential for assessing Warner Music Group's financial leverage and risk management strategies. Further analysis of the company's financial performance and debt management practices would provide additional insights into its long-term financial health.
Peer comparison
Mar 31, 2024