Warner Music Group (WMG)
Quick ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 619,000 | 541,000 |
| 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 | -166,000 | -164,000 |
| Receivables | US$ in thousands | 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 | 775,000 | 744,000 |
| Total current liabilities | US$ in thousands | 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 | 2,819,000 | 2,544,000 |
| Quick ratio | 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 | 0.44 | 0.44 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($587,000K
+ $—K
+ $1,197,000K)
÷ $3,533,000K
= 0.50
The quick ratio of Warner Music Group has shown some fluctuations over the past few quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. In the latest quarter, as of March 31, 2024, the quick ratio was 0.50, indicating that the company had $0.50 in liquid assets available to cover each dollar of current liabilities.
Looking at the trend over the past few quarters, we can see that the quick ratio has hovered around 0.50, showing relative stability in the company's ability to meet its short-term obligations. However, it is essential to note that the quick ratio dipped to 0.27 in the first quarter of 2022 but has since improved.
A quick ratio above 1 indicates that a company has more liquid assets than current liabilities, which is generally considered favorable. Conversely, a quick ratio below 1 may suggest potential liquidity issues. Warner Music Group's quick ratio has generally been below 1, indicating that the company may have some limitations in covering its short-term liabilities with its current liquid assets.
It is important for stakeholders to monitor the quick ratio over time to assess the company's ongoing liquidity position and ability to meet its short-term financial obligations. Additionally, comparing the quick ratio with industry benchmarks and analyzing the trend can provide further insights into Warner Music Group's financial health.
Peer comparison
Mar 31, 2024