Warner Music Group (WMG)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 641,000 | 584,000 | 499,000 | 553,000 | 619,000 |
| Short-term investments | US$ in thousands | 2,000 | 2,000 | -394,000 | — | -206,000 |
| Receivables | US$ in thousands | 1,120,000 | 984,000 | 839,000 | 771,000 | 775,000 |
| Total current liabilities | US$ in thousands | 3,539,000 | 3,368,000 | 3,150,000 | 2,720,000 | 2,819,000 |
| Quick ratio | 0.50 | 0.47 | 0.30 | 0.49 | 0.42 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($641,000K
+ $2,000K
+ $1,120,000K)
÷ $3,539,000K
= 0.50
Warner Music Group's quick ratio has fluctuated over the past five years, ranging from 0.30 to 0.50. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using only its liquid assets.
In 2023, the quick ratio improved to 0.50 from 0.47 in 2022, showing that Warner Music Group's ability to cover its short-term liabilities with its liquid assets slightly strengthened. This could imply better liquidity management or an increase in liquid assets relative to current liabilities.
However, it is important to note that the quick ratio is below 1 in all years, suggesting that Warner Music Group may have relied on other sources, such as credit facilities or long-term assets, to meet its short-term obligations. Investors and creditors may want to monitor the trend of the quick ratio over time to assess the company's liquidity position and financial health.
Peer comparison
Sep 30, 2023