Warner Bros Discovery Inc (WBD)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	14,218,000	13,999,000	7,264,000	6,130,000	5,217,000
Total current liabilities	US$ in thousands	15,332,000	15,017,000	3,459,000	3,082,000	3,239,000
Current ratio		0.93	0.93	2.10	1.99	1.61

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $14,218,000K ÷ $15,332,000K
= 0.93

Warner Bros. Discovery Inc's current ratio has fluctuated over the past five years, ranging from 0.93 to 2.10. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio below 1 indicates that the company may have difficulty meeting its short-term obligations, while a ratio above 1 suggests a strong ability to meet these obligations.

In 2023, the current ratio stands at 0.93, which is below 1 and raises concerns about the company's short-term liquidity position. This may indicate that Warner Bros. Discovery Inc could potentially face challenges in meeting its current liabilities with its current assets. It is important for the company to monitor its liquidity position closely and take measures to improve it if necessary.

It is worth noting that the current ratio has been relatively stable in the past two years, hovering around 0.93. This consistency could reflect a stable balance between current assets and current liabilities. However, the significant decline from the higher ratios observed in 2021 and 2020 may require further investigation to understand the factors driving this change.

Overall, Warner Bros. Discovery Inc's current ratio of 0.93 in 2023 warrants attention, and management should focus on optimizing its working capital management practices to improve its liquidity position and ensure timely payment of current obligations.