Warner Music Group Corp.
WMG Communication Services Entertainment
Warner Music Group Corp.’s revenue for fiscal 2025 (year ended September 2025) was $6.7 billion, up 4.37% from fiscal 2024. In the quarter to June 2026, revenue grew 10.4%, EPS grew 1,400.0%, free cash flow grew 1,528.6% and total debt rose 7.95%, each against the same quarter a year earlier. Dividend growth for five consecutive years, revenue growth for five; insiders bought in the last twelve months.
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Warner Music Group Corp. (WMG) Altman Z-score
Warner Music Group Corp.'s Altman Z-score for fiscal 2025 is 1.72, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.72 | (0.06) |
| FY2024 | 1.78 | (0.04) |
| FY2023 | 1.82 | 0.28 |
| FY2022 | 1.54 | (0.77) |
| FY2021 | 2.31 | 0.96 |
| FY2020 | 1.35 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.15) | — | −0.17 | |
| Retained earnings / total assets | (0.14) | — | −0.19 | |
| EBIT / total assets | 0.07 | — | 0.23 | |
| Market value of equity / total liabilities | 1.95 | — | 1.17 | |
| Sales / total assets | 0.68 | — | 0.68 | |
| Altman Z-score | Distress zone | 1.72 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −0.83 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| ROKU Roku, Inc. compare | 6.6× |
| MSGS The Madison Square Garden Company compare | 3.7× |
| NWS News Corporation compare | 2.4× |
| NWSA News Corporation compare | 2.2× |
| WMG Warner Music Group Corp. | 1.7× |
| SKYD Paramount Skydance Corporation compare | 1.0× |
| LLYVA Liberty Live Holdings, Inc. compare | — |
| FWONA Liberty Media Corporation - Liberty Formula One Series A compare | — |
| FWONK Liberty Media Corporation - Liberty Formula One Series C compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets