Warner Music Group (WMG)
Financial leverage ratio
| Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,155,000 | 8,830,000 | 8,731,000 | 8,991,000 | 8,545,000 | 8,150,000 | 8,010,000 | 8,129,000 | 7,828,000 | 7,699,000 | 7,781,000 | 8,015,000 | 7,211,000 | 7,040,000 | 6,830,000 | 6,943,000 | 6,410,000 | 6,148,000 | 6,124,000 | 6,314,000 |
| Total stockholders’ equity | US$ in thousands | 518,000 | 483,000 | 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 |
| Financial leverage ratio | 17.67 | 18.28 | 20.16 | 19.42 | 27.83 | 29.00 | 31.79 | 30.11 | 51.50 | 49.35 | 50.53 | 52.39 | 232.61 | 86.91 | 119.82 | 433.94 | — | — | — | — |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,155,000K ÷ $518,000K
= 17.67
The financial leverage ratio of Warner Music Group has shown fluctuations over the past few quarters. The ratio decreased from 17.67 in September 2024 to 18.28 in June 2024, indicating slightly lower leverage. However, there was a notable increase to 20.16 in March 2024, suggesting a higher level of leverage.
Further analysis shows that the ratio decreased to 19.42 in December 2023 before significantly increasing to 27.83 in September 2023 and further to 29.00 in June 2023. This upward trend continued with the ratio reaching 31.79 in March 2023 and further to 30.11 in December 2022, indicating a substantial increase in leverage during this period.
The financial leverage ratio then spiked to 51.50 in September 2022, followed by slight fluctuations in the subsequent quarters before peaking at 232.61 in December 2021. This exceptionally high ratio could be a result of increased debt relative to equity during that period.
Subsequently, the ratio decreased to 86.91 in September 2021, followed by further reductions to 119.82 in June 2021 and 433.94 in March 2021. Unfortunately, the data for the financial leverage ratio for the periods after December 2020 is not available.
Overall, the financial leverage ratio of Warner Music Group has exhibited fluctuations, with periods of increasing and decreasing leverage levels. It is important for the company to carefully manage its debt and equity structure to ensure a healthy financial position and sustainable operations.
Peer comparison
Sep 30, 2024