Live Nation Entertainment Inc (LYV)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,231,870 | 5,606,460 | 4,884,730 | 2,537,790 | 2,470,360 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 9,959,900 | 8,303,320 | 6,855,720 | 3,796,570 | 4,107,600 |
| Cash ratio | 0.63 | 0.68 | 0.71 | 0.67 | 0.60 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,231,870K
+ $—K)
÷ $9,959,900K
= 0.63
The cash ratio of Live Nation Entertainment Inc has shown a slight decrease over the five-year period from 2019 to 2023. The ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A cash ratio of 0.74 in 2023 indicates that the company had $0.74 in cash and cash equivalents for every dollar of current liabilities.
Although the ratio has declined slightly, it is still above 0.5, suggesting that Live Nation Entertainment Inc has a relatively strong liquidity position, with a sufficient amount of cash to cover its short-term obligations. However, management may want to monitor this ratio closely to ensure that the company maintains adequate liquidity to meet its financial obligations in the short term.
Overall, Live Nation Entertainment Inc's cash ratio indicates a reasonable level of liquidity, but continuous monitoring and management of cash flow are essential to ensure the company's ability to meet its short-term financial commitments.
Peer comparison
Dec 31, 2023