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WMG · Nasdaq · United States · Services-Amusement & Recreation Services
In shortWarner Music Group Corp. is profitable, generates cash and carries heavy debt, with revenue growing (+4.4% last year).
Financial health
Solid
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 10.3% | 51/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 5.4% | 42/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 62.7% | 100/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | 11.1% | 74/100 |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 0.66× | 0/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 6.28× | 0/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | 3.30× | 20/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | 3.92× | 23/100 |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | -0.85 | 0/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 8.0% | 52/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 1.48× | 100/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 0 of 5 | 100/100 |
| Revenue growth volatility | 6.7% | 86/100 |
| Operating margin volatility | 1.1% | 99/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 4.3% | 40/100 |
|---|---|---|
| EPS growth, 3-year average | – | n/a |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 5,301 | 5,919 | 6,037 | 6,426 | 6,707 |
| Cost of revenue | 2,742 | 3,080 | 3,177 | 3,355 | 3,632 |
| Gross profit | 2,559 | 2,839 | 2,860 | 3,071 | 3,075 |
| Selling, general & admin | 1,721 | 1,862 | 1,826 | 1,879 | 1,889 |
| Operating income | 609 | 714 | 790 | 823 | 694 |
| Interest expense | 119 | 125 | 157 | 182 | 177 |
| Pre-tax income | 456 | 740 | 609 | 601 | 490 |
| Income tax | 149 | 185 | 170 | 123 | 120 |
| Net income | 304 | 551 | 430 | 435 | 365 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 8 reported quarters (10-Q and 10-K filings), in USD millions. The fourth quarter is derived from the annual report.
The last 8 quarters of Warner Music Group Corp. are included in the Investor plan. Try free for 7 days →
−0.85 Distress zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
4/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Jun 30, 2026 · Data updated Aug 5, 2026