Warner Bros Discovery Inc (WBD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,780,000 | 3,731,000 | 3,905,000 | 2,091,000 | 1,552,000 |
| Short-term investments | US$ in thousands | 53,000 | 28,000 | 120,000 | 268,000 | 11,000 |
| Receivables | US$ in thousands | 6,047,000 | 6,380,000 | 2,446,000 | 2,537,000 | 2,633,000 |
| Total current liabilities | US$ in thousands | 15,332,000 | 15,017,000 | 3,459,000 | 3,082,000 | 3,239,000 |
| Quick ratio | 0.64 | 0.68 | 1.87 | 1.59 | 1.30 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,780,000K
+ $53,000K
+ $6,047,000K)
÷ $15,332,000K
= 0.64
The quick ratio measures a company's ability to meet its short-term liabilities with its most liquid assets. In the case of Warner Bros. Discovery Inc, the quick ratio has been relatively stable over the past five years, hovering around 1. This indicates that the company may have enough liquid assets to cover its current liabilities.
The sharp decrease in the quick ratio from 2.10 in 2021 to 0.93 in 2023 suggests a potential weakening in short-term liquidity. This decline may raise concerns about the company's ability to meet immediate obligations with its current liquid assets.
Overall, while the quick ratio for Warner Bros. Discovery Inc has remained above 1 in recent years, indicating a generally healthy liquidity position, the downward trend in the ratio warrants further investigation into the company's current liquidity management and potential impacts on its financial health.
Peer comparison
Dec 31, 2023