Universal Music Group NV (WBO:UMG) Debt-to-Equity

: 0.85 (As of Dec. 2023)

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Universal Music Group NV's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €364 Mil. Universal Music Group NV's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €2,150 Mil. Universal Music Group NV's Total Stockholders Equity for the quarter that ended in Dec. 2023 was €2,962 Mil. Universal Music Group NV's debt to equity for the quarter that ended in Dec. 2023 was 0.85.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Universal Music Group NV's Debt-to-Equity or its related term are showing as below:

WBO:UMG' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.2 Med: 1.38 Max: 2.31
Current: 1.24

During the past 7 years, the highest Debt-to-Equity Ratio of Universal Music Group NV was 2.31. The lowest was 0.20. And the median was 1.38.

WBO:UMG's Debt-to-Equity is ranked worse than
82.01% of 845 companies
in the Media - Diversified industry
Industry Median: 0.28 vs WBO:UMG: 1.24

Universal Music Group NV Debt-to-Equity Historical Data

The historical data trend for Universal Music Group NV's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Universal Music Group NV Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

0.21

2.16

1.53

1.14

0.85

Universal Music Group NV Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-Equity						1.53	1.95	1.14	1.24	0.85

Competitive Comparison

For the Entertainment subindustry, Universal Music Group NV's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Universal Music Group NV Debt-to-Equity Distribution

For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Universal Music Group NV's Debt-to-Equity falls into.

Universal Music Group NV Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Universal Music Group NV's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(364	+	2150)	/	2962
	=	0.85

Universal Music Group NV's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(364	+	2150)	/	2962
	=	0.85

Universal Music Group NV (WBO:UMG) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Universal Music Group NV Debt-to-Equity Related Terms

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Universal Music Group NV (WBO:UMG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Universal Music Group NV (WBO:UMG) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

UNVGY:USA UMGNF:USA UMG:Netherlands UMGa:UK 0VD:Germany

Address

Gravelandseweg 80, Hilversum, NH, NLD, 1217 EW

Website

https://www.universalmusic.com

Universal Music Group is the largest of the three major global record labels with Sony Music in second and Warner Music in third. Universal's larger segment, recorded music, consists of iconic labels like Interscope, Capitol Music, Decca, EMI, and Motown and popular artists such as Drake, Taylor Swift, J Balvin, and Luke Bryan. Universal Music Publishing Group owns and administers almost 4 million compositions and is the second-largest music publisher behind Sony. Universal Music was spun out of Vivendi in September 2021, with 60% distributed to Vivendi shareholders, 20% to Tencent, 10% to Pershing Square Capital, and 10% remaining at Vivendi.

Universal Music Group NV (WBO:UMG) Headlines

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