Warner Music Group (WMG)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 694,000 | 641,000 | 584,000 | 499,000 | 553,000 |
| Short-term investments | US$ in thousands | — | 2,000 | 2,000 | -394,000 | — |
| Total current liabilities | US$ in thousands | 3,897,000 | 3,539,000 | 3,368,000 | 3,150,000 | 2,720,000 |
| Cash ratio | 0.18 | 0.18 | 0.17 | 0.03 | 0.20 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($694,000K
+ $—K)
÷ $3,897,000K
= 0.18
The cash ratio of Warner Music Group has shown some fluctuations over the past five years. In 2024, the cash ratio remained relatively stable at 0.18, the same as the previous year. This indicates that for every dollar of current liabilities, the company has 18 cents available in cash to meet its short-term obligations.
Compared to 2022 and 2021, where the cash ratio was 0.17 and 0.03 respectively, the company's liquidity position seems to have improved. The significant increase from 0.03 in 2021 to 0.18 in 2023 and the subsequent maintenance of this ratio in the following years is a positive trend.
However, looking back at 2020 where the cash ratio was 0.20, the current ratio is slightly lower in recent years. Despite this slight decline, a cash ratio of around 0.18 still indicates that Warner Music Group has a reasonable level of cash to cover its short-term obligations.
Overall, Warner Music Group's cash ratio has been relatively stable in recent years, showing an ability to meet its short-term liabilities with cash on hand, though there has been some variability in the ratio.
Peer comparison
Sep 30, 2024