Warner Music Group (WMG)

Financial leverage ratio

Sep 30, 2024 Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020
Total assets US$ in thousands 9,155,000 8,545,000 7,828,000 7,211,000 6,410,000
Total stockholders’ equity US$ in thousands 518,000 307,000 152,000 31,000 -63,000
Financial leverage ratio 17.67 27.83 51.50 232.61

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,155,000K ÷ $518,000K
= 17.67

Warner Music Group's financial leverage ratio has shown a declining trend over the past five years, indicating an improvement in the company's leverage position. The ratio decreased from 232.61 in 2021 to 17.67 in 2024, reflecting a significant reduction in the level of debt relative to equity. This downward trend suggests that the company has been able to strengthen its financial position by either reducing debt levels or increasing equity through the issuance of new shares or retained earnings. Overall, the decreasing financial leverage ratio is a positive sign of improved financial health and stability for Warner Music Group.


Peer comparison

Sep 30, 2024