Warner Music Group (WMG)
Cash ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 619,000 | 541,000 |
| 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 | -166,000 | -164,000 |
| Total current liabilities | US$ in thousands | 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 | 2,819,000 | 2,544,000 |
| Cash ratio | 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 | 0.16 | 0.15 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($587,000K
+ $—K)
÷ $3,533,000K
= 0.17
Warner Music Group's cash ratio has fluctuated over the past several quarters, ranging from as low as -0.01 to as high as 0.22. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a greater ability to meet short-term obligations, while a lower ratio suggests potential liquidity challenges.
In the most recent quarter ending March 31, 2024, Warner Music Group's cash ratio stood at 0.17, indicating that the company had $0.17 of cash and cash equivalents for every dollar of current liabilities. This implies that the company has a moderate level of liquidity to cover its short-term obligations.
It is noteworthy that the cash ratio has shown some volatility in recent quarters, which could be a result of fluctuations in cash balances, changes in short-term liabilities, or variations in business operations. Analyzing trends in the cash ratio over multiple periods can provide insights into the company's liquidity position and financial health.
Peer comparison
Mar 31, 2024