Warner Bros Discovery Inc (WBD)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	5,312,000	3,780,000	3,731,000	3,905,000	2,091,000
Short-term investments	US$ in thousands	—	60,000	25,000	53,000	268,000
Total current liabilities	US$ in thousands	15,810,000	15,332,000	15,017,000	3,459,000	3,082,000
Cash ratio		0.34	0.25	0.25	1.14	0.77

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,312,000K + $—K) ÷ $15,810,000K
= 0.34

The cash ratio of Warner Bros Discovery Inc has fluctuated over the years based on the provided data. As of December 31, 2020, the cash ratio stood at 0.77, indicating that the company had $0.77 in cash and cash equivalents for every dollar of current liabilities. This ratio increased to 1.14 by December 31, 2021, implying that the company improved its liquidity position during that period.

However, there was a notable decrease in the cash ratio to 0.25 by December 31, 2022, and it remained at the same level by December 31, 2023. This significant drop in the ratio suggests that Warner Bros Discovery Inc may have faced challenges in managing its cash resources relative to its current liabilities during these years.

By December 31, 2024, the cash ratio slightly recovered to 0.34, but it still remained below the levels seen in 2020 and 2021. Overall, the trend in the cash ratio indicates fluctuations in the company's ability to cover its short-term obligations with its available cash and cash equivalents. Further analysis would be needed to understand the underlying reasons for these changes and to assess the company's liquidity management strategies.