Warner Music Group (WMG)

Solvency ratios

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
Debt-to-assets ratio 0.46 0.45 0.46 0.49 0.50 0.49 0.48 0.49 0.49 0.48 0.46 0.48 0.49 0.49 0.48 0.49 0.49 0.47 0.49 0.50
Debt-to-capital ratio 0.90 0.90 0.93 0.93 0.94 0.94 0.96 0.96 0.96 0.96 0.99 0.98 0.98 1.00 1.02 1.01 1.11 1.07 1.11 1.05
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
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

Warner Music Group's solvency ratios show fluctuations over the reported periods. The debt-to-assets ratio has generally ranged between 0.45 to 0.50, indicating that around 45% to 50% of the company's assets are funded by debt. The debt-to-capital ratio has been consistently high, hovering around 0.90 to 1.11, implying that the majority of the company's capital structure is financed by debt.

The debt-to-equity ratio has shown significant variation, ranging from 8.65 to as high as 211.69, suggesting substantial reliance on debt to fund operations in some periods. The financial leverage ratio has also exhibited wide fluctuations, with values ranging from 19.42 to 433.94, showcasing the extent of leverage used by the company to support its operations.

Overall, Warner Music Group's solvency ratios indicate a mix of debt and equity financing in its capital structure, with periods of high debt reliance potentially indicating increased financial risk and leverage. Investors and stakeholders may monitor these ratios closely to assess the company's ability to meet its debt obligations and manage solvency risks effectively.


Coverage ratios

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
Interest coverage 5.02 5.30 5.00 5.01 5.02 5.56 5.71 5.34 5.56 5.43 4.99 4.89 0.02 -1.58 -1.80 -2.18 1.49 2.69 2.51 2.43

Warner Music Group's interest coverage ratio has shown a stable and consistently strong performance over the recent quarters, ranging between 4.89 and 5.71. The interest coverage ratio indicates the company's ability to meet interest payments on its debt obligations from its operating profits. The increasing trend in the interest coverage ratio signifies the company's improving ability to cover its interest expenses comfortably.

However, there are periods, such as in the quarters ended December 2020 and March 2021, where the interest coverage ratio fell significantly below 1, indicating that the company's operating profits were insufficient to cover its interest expenses during those periods. This could be a cause for concern as it may raise questions about the company's financial stability and ability to meet its debt obligations.

Overall, the strong and consistent interest coverage ratio in recent quarters reflects positively on Warner Music Group's financial health and its ability to comfortably meet its interest payment obligations from its operating profits.