Warner Music Group (WMG)

Liquidity ratios

	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
Current ratio	0.68	0.69	0.69	0.70	0.68	0.70	0.69	0.70	0.64	0.61	0.61	0.60	0.60	0.60	0.63	0.63	0.62	0.63	0.58	0.59
Quick ratio	0.50	0.51	0.50	0.52	0.50	0.52	0.51	0.52	0.47	0.42	0.41	0.27	0.30	0.33	0.41	0.42	0.41	0.43	0.38	0.41
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

Warner Music Group's liquidity ratios have shown some fluctuations over the past few quarters.

The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been hovering around 0.60 to 0.70 range. While the current ratio has been relatively stable, it indicates that Warner Music Group may have some difficulty in meeting its short-term liabilities with its current assets alone.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Warner Music Group's quick ratio has been lower than the current ratio, ranging from 0.27 to 0.52. This indicates that the company may have more difficulty covering its short-term obligations without relying on inventory.

The cash ratio, which measures a company's ability to cover its current liabilities with its cash and cash equivalents, has varied significantly from negative values to 0.22. The cash ratio shows that Warner Music Group may have faced challenges in having enough cash on hand to cover its short-term obligations in some periods.

Overall, Warner Music Group should continue to monitor and manage its liquidity position to ensure it can meet its financial obligations as they come due.

Additional liquidity measure

		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 conversion cycle	days	61.01	64.19	56.53	61.92	57.20	59.73	52.09	54.54	48.47	48.45	41.81	47.17	42.06	48.34	48.45	60.00	48.66	48.69	46.46	59.09

Warner Music Group's cash conversion cycle has exhibited some fluctuations over the past several quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From the data provided, we observe that the cash conversion cycle for Warner Music Group has ranged from a low of 41.81 days to a high of 64.19 days over the past eight quarters. A lower cash conversion cycle indicates that the company is efficient in collecting cash from its sales and managing its inventory and accounts receivable effectively.

Overall, Warner Music Group has shown improvements in its cash conversion cycle over the most recent quarter, decreasing from 64.19 days in June 2024 to 61.01 days in September 2024, which suggests a more efficient cash management process during this period. However, it is important for the company to continue monitoring and optimizing its working capital management practices to sustain or further improve its cash conversion cycle efficiency.