Warner Music Group Corp. Financials

WMG

Source SEC Filings (10-K/10-Q) Updated Feb 9, 2026 Currency USD FYE September

This page shows Warner Music Group Corp. (WMG) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 40/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

Warner Music Group Corp. has an operating margin of 10.3%, meaning the company retains $10 of operating profit per $100 of revenue. This results in a moderate score of 45/100, indicating healthy but not exceptional operating efficiency. This is down from 12.8% the prior year.

Growth

Warner Music Group Corp.'s revenue grew a modest 4.4% year-over-year to $6.7B. This slow but positive growth earns a score of 41/100.

Leverage

Warner Music Group Corp. has elevated debt relative to equity (D/E of 6.28), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 0/100, reflecting increased financial risk.

Liquidity

Warner Music Group Corp.'s current ratio of 0.66 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 8/100, which could limit financial flexibility.

Cash Flow

Warner Music Group Corp. has a free cash flow margin of 8.0%, earning a moderate score of 45/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

100

Warner Music Group Corp. earns a strong 56.4% return on equity (ROE), meaning it generates $56 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is down from 84.0% the prior year.

Altman Z-Score Distress

1.44

Warner Music Group Corp. scores 1.44, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($13.5B) relative to total liabilities ($9.1B). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Piotroski F-Score Neutral

4/9

Warner Music Group Corp. passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Cash-Backed

1.86x

For every $1 of reported earnings, Warner Music Group Corp. generates $1.86 in operating cash flow ($678.0M OCF vs $365.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Adequate

3.9x

Warner Music Group Corp. earns $3.9 in operating income for every $1 of interest expense ($694.0M vs $177.0M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.

Key Financial Metrics

Export CSV

Earnings & Revenue

Revenue

$6.7B

YoY+4.4%

5Y CAGR+8.4%

10Y CAGR+8.3%

Warner Music Group Corp. generated $6.7B in revenue in fiscal year 2025. This represents an increase of 4.4% from the prior year.

EBITDA

$1.1B

YoY-7.0%

5Y CAGR+11.4%

10Y CAGR+12.1%

Warner Music Group Corp.'s EBITDA was $1.1B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 7.0% from the prior year.

Net Income

$365.0M

YoY-16.1%

5Y CAGR+7.4%

Warner Music Group Corp. reported $365.0M in net income in fiscal year 2025. This represents a decrease of 16.1% from the prior year.

EPS (Diluted)

N/A

Cash & Balance Sheet

Free Cash Flow

$539.0M

YoY-15.5%

5Y CAGR+12.7%

10Y CAGR+25.9%

Warner Music Group Corp. generated $539.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 15.5% from the prior year.

Cash & Debt

$532.0M

YoY-23.3%

5Y CAGR-3.0%

10Y CAGR+13.0%

Warner Music Group Corp. held $532.0M in cash against $4.1B in long-term debt as of fiscal year 2025.

Dividends Per Share

$0.73

YoY+5.8%

Warner Music Group Corp. paid $0.73 per share in dividends in fiscal year 2025. This represents an increase of 5.8% from the prior year.

Shares Outstanding

N/A

Margins & Returns

Gross Margin

45.9%

YoY-1.9pp

5Y CAGR-0.5pp

10Y CAGR-2.3pp

Warner Music Group Corp.'s gross margin was 45.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.9 percentage points from the prior year.

Operating Margin

10.3%

YoY-2.5pp

5Y CAGR+2.4pp

10Y CAGR+9.7pp

Warner Music Group Corp.'s operating margin was 10.3% in fiscal year 2025, reflecting core business profitability. This is down 2.5 percentage points from the prior year.

Net Margin

5.4%

YoY-1.3pp

5Y CAGR-0.3pp

10Y CAGR+15.6pp

Warner Music Group Corp.'s net profit margin was 5.4% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.3 percentage points from the prior year.

Return on Equity

56.4%

YoY-27.6pp

10Y CAGR+139.4pp

Warner Music Group Corp.'s ROE was 56.4% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 27.6 percentage points from the prior year.

Capital Allocation

R&D Spending

N/A

Share Buybacks

$16.0M

Warner Music Group Corp. spent $16.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Capital Expenditures

$139.0M

YoY+19.8%

5Y CAGR+6.0%

10Y CAGR+6.2%

Warner Music Group Corp. invested $139.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 19.8% from the prior year.

WMG Income Statement

Metric	FY25	FY24	FY23	FY22	FY20	FY19
Revenue	$6.7B+4.4%	$6.4B+6.4%	$6.0B+2.0%	$5.9B+32.6%	$4.5B-0.3%	$4.5B
Cost of Revenue	$3.6B+8.3%	$3.4B+5.6%	$3.2B+3.1%	$3.1B+32.0%	$2.3B-2.8%	$2.4B
Gross Profit	$3.1B+0.1%	$3.1B+7.4%	$2.9B+0.7%	$2.8B+33.3%	$2.1B+2.7%	$2.1B
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$1.9B+0.5%	$1.9B+2.9%	$1.8B-1.9%	$1.9B-14.2%	$2.2B+43.6%	$1.5B
Operating Income	$694.0M-15.7%	$823.0M+4.2%	$790.0M+10.6%	$714.0M+411.8%	-$229.0M-164.3%	$356.0M
Interest Expense	$177.0M-2.7%	$182.0M+15.9%	$157.0M+25.6%	$125.0M	N/A	N/A
Income Tax	$120.0M-2.4%	$123.0M-27.6%	$170.0M-8.1%	$185.0M+704.3%	$23.0M+155.6%	$9.0M
Net Income	$365.0M-16.1%	$435.0M+1.2%	$430.0M-22.0%	$551.0M+216.0%	-$475.0M-285.5%	$256.0M
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Revenue	$2K-100.0%	$1.8B-1.5%	$1.9B+10.6%	$1.7B+13.8%	$1.5B-10.9%	$1.7B+2.2%	$1.6B+4.9%	$1.6B
Cost of Revenue	$987-100.0%	$987.0M-4.5%	$1.0B+13.3%	$913.0M+15.4%	$791.0M-11.5%	$894.0M+4.7%	$854.0M+2.9%	$830.0M
Gross Profit	$853-100.0%	$853.0M+2.3%	$834.0M+7.5%	$776.0M+12.0%	$693.0M-10.2%	$772.0M-0.5%	$776.0M+7.2%	$724.0M
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$458-100.0%	$458.0M-7.3%	$494.0M+4.9%	$471.0M+4.7%	$450.0M-5.1%	$474.0M-4.2%	$495.0M+7.1%	$462.0M
Operating Income	$288-100.0%	$288.0M+101.4%	$143.0M-15.4%	$169.0M+0.6%	$168.0M-21.5%	$214.0M+49.7%	$143.0M-30.9%	$207.0M
Interest Expense	$46-100.0%	$46.0M+2.2%	$45.0M0.0%	$45.0M+2.3%	$44.0M+2.3%	$43.0M-4.4%	$45.0M-2.2%	$46.0M
Income Tax	$71-100.0%	$71.0M+2466.7%	-$3.0M-160.0%	$5.0M-82.8%	$29.0M-67.4%	$89.0M+2866.7%	$3.0M-90.0%	$30.0M
Net Income	$176-100.0%	$176.0M+61.5%	$109.0M+781.3%	-$16.0M-144.4%	$36.0M-84.7%	$236.0M+475.6%	$41.0M-70.5%	$139.0M
EPS (Diluted)	$0.33	N/A	N/A	N/A	N/A	N/A	N/A	N/A

WMG Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY20	FY19
Total Assets	$9.8B+7.4%	$9.2B+7.1%	$8.5B+9.2%	$7.8B+22.1%	$6.4B+6.5%	$6.0B
Current Assets	$2.8B+4.8%	$2.6B+10.0%	$2.4B+12.3%	$2.1B+27.5%	$1.7B-0.8%	$1.7B
Cash & Equivalents	$532.0M-23.3%	$694.0M+8.3%	$641.0M+9.8%	$584.0M+5.6%	$553.0M-10.7%	$619.0M
Inventory	$62.0M-37.4%	$99.0M-21.4%	$126.0M+16.7%	$108.0M+36.7%	$79.0M+6.8%	$74.0M
Accounts Receivable	$1.3B+6.8%	$1.3B+12.1%	$1.1B+13.8%	$984.0M+27.6%	$771.0M-0.5%	$775.0M
Goodwill	$2.1B+2.0%	$2.0B+1.4%	$2.0B+3.8%	$1.9B+4.9%	$1.8B+4.0%	$1.8B
Total Liabilities	$9.1B+7.0%	$8.5B+4.5%	$8.1B+5.9%	$7.7B+18.7%	$6.5B+2.7%	$6.3B
Current Liabilities	$4.2B+7.8%	$3.9B+10.1%	$3.5B+5.1%	$3.4B+23.8%	$2.7B-3.5%	$2.8B
Long-Term Debt	$4.1B+1.2%	$4.0B+1.3%	$4.0B+6.2%	$3.7B+20.2%	$3.1B+4.4%	$3.0B
Total Equity	$647.0M+24.9%	$518.0M+68.7%	$307.0M+102.0%	$152.0M+341.3%	-$63.0M+78.2%	-$289.0M
Retained Earnings	-$1.3B-1.4%	-$1.3B+5.3%	-$1.4B+6.1%	-$1.5B+15.6%	-$1.7B-48.6%	-$1.2B

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Total Assets	$10K-100.0%	$10.0B+1.9%	$9.8B+0.5%	$9.8B+2.2%	$9.6B+4.6%	$9.1B-0.1%	$9.2B+3.7%	$8.8B
Current Assets	$3K-100.0%	$3.0B+9.0%	$2.8B+3.4%	$2.7B+3.0%	$2.6B-4.3%	$2.7B+2.8%	$2.6B+6.4%	$2.5B
Cash & Equivalents	$751-100.0%	$751.0M+41.2%	$532.0M+0.9%	$527.0M-17.3%	$637.0M-20.6%	$802.0M+15.6%	$694.0M+14.3%	$607.0M
Inventory	$60-100.0%	$60.0M-3.2%	$62.0M-38.6%	$101.0M+14.8%	$88.0M+4.8%	$84.0M-15.2%	$99.0M+7.6%	$92.0M
Accounts Receivable	$1K-100.0%	$1.4B+2.5%	$1.3B+2.7%	$1.3B+7.1%	$1.2B+1.4%	$1.2B-4.3%	$1.3B+2.7%	$1.2B
Goodwill	$2K-100.0%	$2.1B+0.1%	$2.1B-0.1%	$2.1B+1.6%	$2.0B+0.9%	$2.0B-0.4%	$2.0B+0.9%	$2.0B
Total Liabilities	$9K-100.0%	$9.2B+1.2%	$9.1B+1.2%	$9.0B+2.1%	$8.8B+3.9%	$8.4B-0.4%	$8.5B+3.5%	$8.2B
Current Liabilities	$4K-100.0%	$4.3B+2.6%	$4.2B+3.7%	$4.0B+3.4%	$3.9B-0.2%	$3.9B+0.7%	$3.9B+9.1%	$3.6B
Long-Term Debt	$4K-100.0%	$4.4B+7.6%	$4.1B0.0%	$4.1B+1.8%	$4.0B+0.9%	$4.0B-1.5%	$4.0B+0.9%	$4.0B
Total Equity	$720-100.0%	$720.0M+11.3%	$647.0M+9.8%	$589.0M+3.9%	$567.0M+4.0%	$545.0M+5.2%	$518.0M+7.2%	$483.0M
Retained Earnings	$1K+100.0%	-$1.3B+5.7%	-$1.3B+0.7%	-$1.3B-8.9%	-$1.2B-5.0%	-$1.2B+10.8%	-$1.3B-4.2%	-$1.3B

WMG Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY20	FY19
Operating Cash Flow	$678.0M-10.1%	$754.0M+9.8%	$687.0M-7.4%	$742.0M+60.3%	$463.0M+15.8%	$400.0M
Capital Expenditures	$139.0M+19.8%	$116.0M-8.7%	$127.0M-5.9%	$135.0M+58.8%	$85.0M-18.3%	$104.0M
Free Cash Flow	$539.0M-15.5%	$638.0M+13.9%	$560.0M-7.7%	$607.0M+60.6%	$378.0M+27.7%	$296.0M
Investing Cash Flow	-$340.0M-9.3%	-$311.0M-3.7%	-$300.0M+63.6%	-$824.0M-276.3%	-$219.0M+41.8%	-$376.0M
Financing Cash Flow	-$497.0M-25.5%	-$396.0M-21.8%	-$325.0M-272.9%	$188.0M+159.5%	-$316.0M-459.1%	$88.0M
Dividends Paid	$383.0M+6.1%	$361.0M+6.2%	$340.0M+6.9%	$318.0M-7.6%	$344.0M+266.0%	$94.0M
Share Buybacks	$16.0M	$0	$0	N/A	N/A	N/A

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Operating Cash Flow	$440-100.0%	$440.0M+90.5%	$231.0M+402.2%	$46.0M-33.3%	$69.0M-79.2%	$332.0M+9.2%	$304.0M+61.7%	$188.0M
Capital Expenditures	$20-100.0%	$20.0M-28.6%	$28.0M-28.2%	$39.0M+8.3%	$36.0M0.0%	$36.0M+9.1%	$33.0M+17.9%	$28.0M
Free Cash Flow	$420-100.0%	$420.0M+106.9%	$203.0M+2800.0%	$7.0M-78.8%	$33.0M-88.9%	$296.0M+9.2%	$271.0M+69.4%	$160.0M
Investing Cash Flow	$52+100.0%	-$52.0M+22.4%	-$67.0M+5.6%	-$71.0M+41.3%	-$121.0M-49.4%	-$81.0M+26.4%	-$110.0M-44.7%	-$76.0M
Financing Cash Flow	$159+100.0%	-$159.0M-3.9%	-$153.0M-59.4%	-$96.0M+20.7%	-$121.0M+4.7%	-$127.0M-9.5%	-$116.0M-28.9%	-$90.0M
Dividends Paid	$100-100.0%	$100.0M0.0%	$100.0M+6.4%	$94.0M-1.1%	$95.0M+1.1%	$94.0M0.0%	$94.0M+5.6%	$89.0M
Share Buybacks	$26-100.0%	$26.0M+100.0%	$13.0M+1200.0%	$1.0M	$0-100.0%	$2.0M	$0	$0

WMG Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY20	FY19
Gross Margin	45.9%-1.9pp	47.8%+0.4pp	47.4%-0.6pp	48.0%+0.2pp	47.7%+1.4pp	46.4%
Operating Margin	10.3%-2.5pp	12.8%-0.3pp	13.1%+1.0pp	12.1%+17.2pp	-5.1%-13.1pp	8.0%
Net Margin	5.4%-1.3pp	6.8%-0.4pp	7.1%-2.2pp	9.3%+20.0pp	-10.6%-16.4pp	5.7%
Return on Equity	56.4%-27.6pp	84.0%-56.1pp	140.1%-222.4pp	362.5%	N/A	N/A
Return on Assets	3.7%-1.0pp	4.8%-0.3pp	5.0%-2.0pp	7.0%+14.5pp	-7.4%-11.7pp	4.3%
Current Ratio	0.66-0.0	0.680.0	0.68+0.0	0.64+0.0	0.62+0.0	0.60
Debt-to-Equity	6.28-1.5	7.75-5.2	12.91-11.6	24.55+73.8	-49.27-39.0	-10.29
FCF Margin	8.0%-1.9pp	9.9%+0.7pp	9.3%-1.0pp	10.3%+1.8pp	8.5%+1.9pp	6.6%

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Gross Margin	46.4%0.0pp	46.4%+1.7pp	44.6%-1.3pp	45.9%-0.8pp	46.7%+0.4pp	46.3%-1.3pp	47.6%+1.0pp	46.6%
Operating Margin	15.7%0.0pp	15.7%+8.0pp	7.7%-2.3pp	10.0%-1.3pp	11.3%-1.5pp	12.8%+4.1pp	8.8%-4.6pp	13.3%
Net Margin	9.6%0.0pp	9.6%+3.7pp	5.8%+6.8pp	-0.9%-3.4pp	2.4%-11.7pp	14.2%+11.6pp	2.5%-6.4pp	8.9%
Return on Equity	24.4%0.0pp	24.4%+7.6pp	16.9%+19.6pp	-2.7%-9.1pp	6.3%-37.0pp	43.3%+35.4pp	7.9%-20.9pp	28.8%
Return on Assets	1.8%0.0pp	1.8%+0.7pp	1.1%+1.3pp	-0.2%-0.5pp	0.4%-2.2pp	2.6%+2.1pp	0.4%-1.1pp	1.6%
Current Ratio	0.700.0	0.70+0.0	0.660.0	0.660.0	0.66-0.0	0.69+0.0	0.68-0.0	0.69
Debt-to-Equity	5.64-0.4	6.07-0.2	6.28-0.6	6.89-0.1	7.04-0.2	7.26-0.5	7.75-0.5	8.24
FCF Margin	22.8%0.0pp	22.8%+12.0pp	10.9%+10.5pp	0.4%-1.8pp	2.2%-15.6pp	17.8%+1.1pp	16.6%+6.3pp	10.3%

Note: The current ratio is below 1.0 (0.66), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Frequently Asked Questions

What is Warner Music Group Corp.'s annual revenue?

Warner Music Group Corp. (WMG) reported $6.7B in total revenue for fiscal year 2025. This represents a 4.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Warner Music Group Corp.'s revenue growing?

Warner Music Group Corp. (WMG) revenue grew by 4.4% year-over-year, from $6.4B to $6.7B in fiscal year 2025.

Is Warner Music Group Corp. profitable?

Yes, Warner Music Group Corp. (WMG) reported a net income of $365.0M in fiscal year 2025, with a net profit margin of 5.4%.

What is Warner Music Group Corp.'s EBITDA?

Warner Music Group Corp. (WMG) had EBITDA of $1.1B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Warner Music Group Corp. have?

As of fiscal year 2025, Warner Music Group Corp. (WMG) had $532.0M in cash and equivalents against $4.1B in long-term debt.

What is Warner Music Group Corp.'s gross margin?

Warner Music Group Corp. (WMG) had a gross margin of 45.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Warner Music Group Corp.'s operating margin?

Warner Music Group Corp. (WMG) had an operating margin of 10.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Warner Music Group Corp.'s net profit margin?

Warner Music Group Corp. (WMG) had a net profit margin of 5.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Does Warner Music Group Corp. pay dividends?

Yes, Warner Music Group Corp. (WMG) paid $0.73 per share in dividends during fiscal year 2025.

What is Warner Music Group Corp.'s return on equity (ROE)?

Warner Music Group Corp. (WMG) has a return on equity of 56.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Warner Music Group Corp.'s free cash flow?

Warner Music Group Corp. (WMG) generated $539.0M in free cash flow during fiscal year 2025. This represents a -15.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Warner Music Group Corp.'s operating cash flow?

Warner Music Group Corp. (WMG) generated $678.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Warner Music Group Corp.'s total assets?

Warner Music Group Corp. (WMG) had $9.8B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Warner Music Group Corp.'s capital expenditures?

Warner Music Group Corp. (WMG) invested $139.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Does Warner Music Group Corp. buy back shares?

Yes, Warner Music Group Corp. (WMG) spent $16.0M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

What is Warner Music Group Corp.'s current ratio?

Warner Music Group Corp. (WMG) had a current ratio of 0.66 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

What is Warner Music Group Corp.'s debt-to-equity ratio?

Warner Music Group Corp. (WMG) had a debt-to-equity ratio of 6.28 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Warner Music Group Corp.'s return on assets (ROA)?

Warner Music Group Corp. (WMG) had a return on assets of 3.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Warner Music Group Corp.'s Altman Z-Score?

Warner Music Group Corp. (WMG) has an Altman Z-Score of 1.44, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Warner Music Group Corp.'s Piotroski F-Score?

Warner Music Group Corp. (WMG) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Warner Music Group Corp.'s earnings high quality?

Warner Music Group Corp. (WMG) has an earnings quality ratio of 1.86x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Warner Music Group Corp. cover its interest payments?

Warner Music Group Corp. (WMG) has an interest coverage ratio of 3.9x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Warner Music Group Corp.?

Warner Music Group Corp. (WMG) scores 40 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.