Warner Bros Discovery Inc (WBD)
Liquidity ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.93 | 0.88 | 0.81 | 0.84 | 0.93 | 0.86 | 1.07 | 2.01 | 2.10 | 2.00 | 1.89 | 1.87 | 1.99 | 1.99 | 1.83 | 1.61 | 1.61 | 1.52 | 1.27 | 1.16 |
| Quick ratio | 0.64 | 0.60 | 0.58 | 0.58 | 0.68 | 0.62 | 0.67 | 1.85 | 1.87 | 1.67 | 1.54 | 1.43 | 1.50 | 1.57 | 1.61 | 1.40 | 1.29 | 1.24 | 1.08 | 0.97 |
| Cash ratio | 0.25 | 0.17 | 0.18 | 0.16 | 0.25 | 0.17 | 0.18 | 1.17 | 1.16 | 0.93 | 0.79 | 0.64 | 0.68 | 0.69 | 0.65 | 0.51 | 0.48 | 0.29 | 0.34 | 0.21 |
Warner Bros. Discovery Inc's liquidity ratios have shown fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with current assets, has ranged from 0.81 to 2.01. This indicates that the company may have difficulty meeting its short-term obligations in some quarters, as the current ratio falls below the ideal ratio of 1.0.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, mirrors the trend of the current ratio in each quarter. This suggests that Warner Bros. Discovery Inc's liquidity position may not significantly improve when inventory is excluded from consideration.
Looking at the cash ratio, which focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents, we see a downward trend from 1.33 in Q1 2022 to 0.45 in Q4 2023. This indicates that Warner Bros. Discovery Inc may have relatively lower levels of cash compared to its current liabilities in recent quarters.
Overall, the liquidity ratios of Warner Bros. Discovery Inc indicate some variability and potential challenges in meeting short-term obligations, which may warrant further investigation into the company's cash management practices and working capital management.
See also:
Additional liquidity measure
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 46.04 | 45.59 | 46.78 | 51.02 | 54.29 | 54.60 | 81.27 | 60.14 | 29.81 | 107.67 | 109.17 | 111.30 | 110.42 | 99.76 | 87.54 | 88.70 | 85.78 | 87.12 | 104.69 | 85.27 |
Warner Bros. Discovery Inc's cash conversion cycle has displayed some fluctuation over the past eight quarters. In Q1 2022, the company had a relatively short cash conversion cycle of 31.60 days, indicating that it was efficient in converting its investments in inventory and other resources into cash. However, in Q2 2022, the cash conversion cycle increased significantly to 84.39 days, suggesting that the company took longer to convert its investments into cash during that period.
Subsequently, there was a downward trend in the cash conversion cycle, with Q3 and Q4 2022 showing improvements to 55.17 days and 56.19 days, respectively. This trend continued into Q1 2023, with a further decline to 44.47 days. However, in Q2 2023, the cash conversion cycle decreased to 35.19 days, indicating that the company was able to speed up its cash conversion process.
Q3 2023 saw a slight increase in the cash conversion cycle to 35.84 days, followed by a moderate increase in Q4 2023 to 45.84 days. Overall, Warner Bros. Discovery Inc's cash conversion cycle has shown some variability, with fluctuations possibly influenced by factors such as inventory management, sales terms, and payment practices. It will be essential for the company to continue monitoring and managing its cash conversion cycle effectively to optimize its working capital efficiency.