Warner Music Group (WMG)
Cash ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 694,000 | 607,000 | 587,000 | 754,000 | 641,000 | 600,000 | 601,000 | 720,000 | 584,000 | 345,000 | 385,000 | 450,000 | 499,000 | 442,000 | 588,000 | 566,000 | 553,000 | 532,000 | 484,000 | 462,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 2,000 | 7,000 | 11,000 | 16,000 | 2,000 | — | — | -494,000 | -394,000 | -331,000 | -234,000 | -246,000 | -222,000 | -188,000 | -204,000 | -189,000 |
| Total current liabilities | US$ in thousands | 3,897,000 | 3,573,000 | 3,533,000 | 3,745,000 | 3,539,000 | 3,290,000 | 3,187,000 | 3,341,000 | 3,368,000 | 3,123,000 | 3,131,000 | 3,357,000 | 3,150,000 | 2,902,000 | 2,784,000 | 2,890,000 | 2,720,000 | 2,525,000 | 2,732,000 | 2,799,000 |
| Cash ratio | 0.18 | 0.17 | 0.17 | 0.20 | 0.18 | 0.18 | 0.19 | 0.22 | 0.17 | 0.11 | 0.12 | -0.01 | 0.03 | 0.04 | 0.13 | 0.11 | 0.12 | 0.14 | 0.10 | 0.10 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($694,000K
+ $—K)
÷ $3,897,000K
= 0.18
Warner Music Group's cash ratio has exhibited some fluctuations over the past few quarters, ranging from 0.10 to 0.22. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.
Looking at the trend, the cash ratio has generally been within a reasonable range, with some quarters showing an increase while others experiencing a slight decrease. The ratio peaked at 0.22 in December 2022, indicating a strong ability to cover short-term liabilities with available cash. However, the ratio dropped to 0.11 in June 2022, suggesting a decrease in liquidity.
Overall, it is important for Warner Music Group to closely monitor its cash ratio to ensure it maintains a healthy level of liquidity to meet its short-term obligations. A consistent and prudent management of cash resources will be crucial for the company's financial stability and operational flexibility.
Peer comparison
Sep 30, 2024