Warner Music Group (WMG)

Quick ratio

Sep 30, 2024 Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020
Cash US$ in thousands 694,000 641,000 584,000 499,000 553,000
Short-term investments US$ in thousands 2,000 2,000 -394,000
Receivables US$ in thousands 1,255,000 1,120,000 984,000 839,000 771,000
Total current liabilities US$ in thousands 3,897,000 3,539,000 3,368,000 3,150,000 2,720,000
Quick ratio 0.50 0.50 0.47 0.30 0.49

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($694,000K + $—K + $1,255,000K) ÷ $3,897,000K
= 0.50

The quick ratio of Warner Music Group has fluctuated over the past five years, ranging from 0.30 to 0.50. The consistency in quick ratio values around 0.50 in 2024 and 2023 indicates that the company's ability to cover its short-term liabilities with its most liquid assets has remained stable. The quick ratio of 0.47 in 2022 was slightly lower but still above 0.4, indicating a reasonable level of liquidity. However, the quick ratio of 0.30 in 2021 was notably lower, suggesting potential challenges in meeting short-term obligations with liquid assets during that period. In 2020, the quick ratio improved to 0.49, showing a better liquidity position compared to 2021 but still slightly below the recent years' levels. Overall, Warner Music Group's quick ratio demonstrates varying levels of liquidity over the years, with some fluctuations but generally maintaining a reasonable ability to cover short-term liabilities with liquid assets.


Peer comparison

Sep 30, 2024