Warner Music Group (WMG)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,402,000 | 2,139,000 | 1,896,000 | 1,678,000 | 1,691,000 |
| Total current liabilities | US$ in thousands | 3,539,000 | 3,368,000 | 3,150,000 | 2,720,000 | 2,819,000 |
| Current ratio | 0.68 | 0.64 | 0.60 | 0.62 | 0.60 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,402,000K ÷ $3,539,000K
= 0.68
The current ratio of Warner Music Group has demonstrated a fluctuating trend over the past five years, ranging from 0.60 to 0.68. This ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio below 1 indicates potential liquidity concerns, as it suggests that the company may not have enough current assets to meet its short-term obligations.
In 2023, Warner Music Group's current ratio improved to 0.68 from 0.64 in 2022. This suggests that the company may have increased its current assets or decreased its current liabilities, potentially enhancing its ability to meet its short-term obligations. However, it is important to note that a current ratio of 0.68 still indicates that the company may face some challenges in meeting its short-term liabilities.
Overall, Warner Music Group's current ratio has shown some variability, and further analysis of its current asset and liability composition would be beneficial to fully assess the company's liquidity position.
Peer comparison
Sep 30, 2023