Warner Music Group Corp. Financials

WMG

Source SEC Filings (10-K/10-Q) Data as of Mar 31, 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).

Rhea AI WMG FY2025 2026-05-07

Revenue is still growing, but incremental sales are yielding far less profit while the business remains cash generative.

In FY2025, revenue growth stopped translating into gross profit: sales reached $6.7B while gross profit stayed near $3.1B. Even with that margin compression, operating cash flow of $678M still ran well above net income of $365M, suggesting the pressure is hitting accounting margins faster than cash collection.

The company appears comfortable operating with tight liquidity and a working-capital deficit: the current ratio was 0.7x in FY2025 and stayed below 1.0x across the last three years. Because free cash flow still came in at $539M, that posture looks like a recurring feature of the model rather than a one-year funding scramble.

Capital returns absorbed much of the cash the business produced: dividends plus buybacks used about $399M out of $539M of FY2025 free cash flow. That helps explain why long-term debt remained around $4.1B even as equity rebuilt, so leverage is easing mainly because the equity base is less thin, not because debt has been aggressively reduced.

Financial Health Signals

Financial Health Score 51/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Warner Music Group Corp.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

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 strong profitability earns a score of 80/100, reflecting efficient cost management and pricing power. 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 52/100.

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 19/100, reflecting increased financial risk.

Liquidity

Warner Music Group Corp.'s current ratio of 0.66 is below the typical benchmark, resulting in a score of 8/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow

Warner Music Group Corp. has a free cash flow margin of 8.0%, earning a moderate score of 64/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

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 84/100. This is down from 84.0% the prior year.

Altman Z-Score Distress

1.56

Warner Music Group Corp. scores 1.56, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($15.2B) relative to total liabilities ($9.1B). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial

4/8

Warner Music Group Corp. passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 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

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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	$1.7B-5.9%	$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	$930.0M-5.8%	$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	$802.0M-6.0%	$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	$460.0M+0.4%	$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	$264.0M-8.3%	$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	$44.0M-4.3%	$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	$73.0M+2.8%	$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	$183.0M+4.0%	$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)	$0.34	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	$10.6B+6.0%	$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	$3.2B+6.7%	$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	$741.0M-1.3%	$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	$65.0M+8.3%	$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	$1.5B+9.5%	$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	$2.1B-0.4%	$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	$9.6B+5.0%	$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	$4.4B+2.6%	$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	$4.7B+8.0%	$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	$738.0M+2.5%	$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	-$1.2B+6.6%	-$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	$126.0M-71.4%	$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	$27.0M+35.0%	$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	$99.0M-76.4%	$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	-$471.0M-805.8%	-$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	$328.0M+306.3%	-$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	$100.0M0.0%	$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	$22.0M-15.4%	$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	46.3%-0.1pp	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	15.2%-0.4pp	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	10.6%+1.0pp	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	24.8%+0.4pp	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	1.7%-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	0.73+0.0	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	6.39+0.3	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	5.7%-17.1pp	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 1.56, 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 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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 51 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.