Warner Music Group (WMG)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 6,017,000 | 5,955,000 |
| 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 |
| Financial leverage ratio | 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 | — | — | — | — | — | — |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,731,000K ÷ $433,000K
= 20.16
The financial leverage ratio for Warner Music Group has shown significant fluctuations over the periods provided. The ratio indicates the proportion of the company's total assets financed by debt. A high financial leverage ratio suggests that a company has a substantial amount of debt relative to its assets, which can increase financial risk and interest expenses.
Warner Music Group's financial leverage ratio ranged from 19.42 to 232.61 over the period reported. The data highlights a mix of moderate to extremely high levels of leverage, with the ratio peaking at 433.94. It is essential for stakeholders to closely monitor such substantial swings in leverage ratios as it can impact the company's financial stability and creditworthiness.
The sudden spikes in the financial leverage ratio, especially in the latter periods, indicate a potentially risky capital structure or aggressive debt financing strategies employed by Warner Music Group. Further analysis of the company's debt levels, profitability, and ability to service its debt obligations would be necessary to fully assess the implications of these leverage ratios on the company's financial health.
Peer comparison
Mar 31, 2024