Warner Music Group (WMG)
Quick ratio
| 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 | US$ in thousands | 694,000 | 607,000 | 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 |
| 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 |
| Receivables | US$ in thousands | 1,255,000 | 1,222,000 | 1,197,000 | 1,195,000 | 1,120,000 | 1,113,000 | 1,017,000 | 1,004,000 | 984,000 | 970,000 | 914,000 | 941,000 | 839,000 | 834,000 | 783,000 | 884,000 | 771,000 | 732,000 | 763,000 | 882,000 |
| Total current liabilities | US$ in thousands | 3,897,000 | 3,573,000 | 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 |
| 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 |
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 shown some fluctuation over the past few quarters. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has ranged from 0.27 to 0.52 over the past two years.
The quick ratio seems to have improved slightly in the most recent quarters compared to the earlier periods. In general, a quick ratio of 1 or higher is considered healthy, indicating that a company has enough liquid assets to cover its current liabilities. While Warner Music Group's quick ratios have mostly been below 1, the recent improvement suggests a better ability to meet short-term obligations using its liquid assets.
It is important to monitor the trend of the quick ratio over time to assess Warner Music Group's liquidity position and its ability to address short-term financial obligations effectively.
Peer comparison
Sep 30, 2024