Warner Music Group (WMG)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 641,000 | 584,000 | 499,000 | 553,000 | 619,000 |
| Short-term investments | US$ in thousands | 2,000 | 2,000 | -394,000 | — | -206,000 |
| Total current liabilities | US$ in thousands | 3,539,000 | 3,368,000 | 3,150,000 | 2,720,000 | 2,819,000 |
| Cash ratio | 0.18 | 0.17 | 0.03 | 0.20 | 0.15 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($641,000K
+ $2,000K)
÷ $3,539,000K
= 0.18
The cash ratio of Warner Music Group has shown varying trends over the past five years. In 2023, the cash ratio stood at 0.18, representing an increase from the previous year when it was at 0.17. This indicates that the company had $0.18 in cash and cash equivalents for every dollar of current liabilities in 2023.
Comparing this to 2021 and 2019, where the cash ratios were 0.03 and 0.15 respectively, we can observe significant fluctuations in the company's liquidity position over the years. It is worth noting that a higher cash ratio is generally preferred as it indicates that the company has more liquid assets to cover its short-term obligations.
However, in 2020, the cash ratio was relatively high at 0.20, suggesting that the company had a stronger liquidity position that year compared to the surrounding years. Overall, Warner Music Group's cash ratio has shown variability, highlighting the importance of carefully managing cash and cash equivalents to ensure liquidity in the face of uncertainties.
Peer comparison
Sep 30, 2023