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