Warner Music Group (WMG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.44 | 0.45 | 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 |
| Debt-to-capital ratio | 0.89 | 0.89 | 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 |
| Debt-to-equity ratio | 7.75 | 8.24 | 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 | 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 | — | — | — | — |
Warner Music Group's solvency ratios have shown fluctuating trends over the past few quarters. The debt-to-assets ratio has ranged between 0.44 and 0.50, reflecting a moderate level of debt relative to the company's total assets. The debt-to-capital ratio has fluctuated between 0.89 and 1.11, indicating that debt comprises a significant portion of the company's capital structure.
The debt-to-equity ratio has varied significantly, ranging from 7.75 to 211.69. This suggests that Warner Music Group has increasingly relied on debt financing compared to equity, with higher ratios indicating a higher financial risk and leverage. The financial leverage ratio has also shown a wider range from 17.67 to 433.94, indicating that the company has a high level of financial leverage, particularly in recent quarters.
Overall, Warner Music Group's solvency ratios indicate a mix of moderate to high levels of leverage and debt utilization, which may impact the company's financial flexibility and risk exposure. Monitoring these ratios over time is crucial to understanding the company's long-term financial health and ability to meet its debt obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.52 | 4.98 | 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 |
Warner Music Group's interest coverage ratio has shown some fluctuations over the periods provided. Interest coverage measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest obligations.
From Dec 2019 to Mar 2021, the interest coverage ratio improved steadily, reaching its peak at 5.56 in Mar 2021. This indicates that the company's earnings were more than sufficient to cover its interest expenses during this period. However, there was a significant drop in interest coverage in Dec 2020 and Mar 2021, with the ratio falling to 0.02 and -1.58, respectively. This indicates a sudden weakness in the company's ability to cover its interest payments.
Following the decline, there was a gradual recovery in interest coverage ratios from Jun 2021 to Sep 2024, with the ratio consistently above 4.5. This shows an improvement in the company's financial health and its ability to service its debt obligations.
Overall, Warner Music Group's interest coverage ratio has shown mixed performance, with periods of both strength and weakness. Investors and creditors may find this analysis useful in assessing the company's ability to manage its debt and financial risk.