Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Warner Music Group's
Operating Income
for the
three
months ended in Mar. 2025 was $181 Mil. Warner Music Group's Interest Expense for the
three
months ended in Mar. 2025 was $-39 Mil.
Warner Music Group's interest coverage for the quarter that ended in Mar. 2025 was 4.64.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Warner Music Group's Interest Coverage or its related term are showing as below:
WMG'
s Interest Coverage Range Over the Past 10 Years
Min: 0.7 Med: 2.51 Max: 6.01
Current: 5.47
WMG's Interest Coverage is ranked worse than 61.02% of 626
companies
in the Media - Diversified industry
Industry Median: 10.51
vs WMG: 5.47
Warner Music Group Interest Coverage Historical Data
The historical data trend for Warner Music Group's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Competitive Comparison of Warner Music Group's Interest Coverage
For the Entertainment subindustry, Warner Music Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
Warner Music Group's Interest Coverage Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Warner Music Group's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Warner Music Group (NAS:WMG) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Warner Music Group Interest Coverage Related Terms
Thank you for viewing the detailed overview of Warner Music Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Warner Music is the third-largest of the three major record companies. Recorded music accounts for most of the firm's revenue, with the segment housing notable record labels including Atlantic Records, Warner Records, Elektra Records. Some of the most successful current artists signed to record deals with Warner include Ed Sheeran, Bruno Mars, Cardi B, and Dua Lipa. Warner's remaining revenue comes from its publishing business, where Warner Chappell represents more than 180,000 songwriters and composers, some of whom are also Warner recording artists but many of whom are not recording artists or are attached to other labels. Warner Chappell controls more than 1 million musical compositions. Access Industries controls 98% of Warner's voting rights, while holding a 72% economic interest.
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