The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Universal Music Group NV's quick ratio for the quarter that ended in Dec. 2023 was 0.61.
Universal Music Group NV has a quick ratio of 0.61. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Universal Music Group NV's Quick Ratio or its related term are showing as below:
XAMS:UMG'
s Quick Ratio Range Over the Past 10 Years
Min: 0.53 Med: 0.65 Max: 0.84
Current: 0.61
During the past 7 years, Universal Music Group NV's highest Quick Ratio was 0.84. The lowest was 0.53. And the median was 0.65.
XAMS:UMG's Quick Ratio is ranked worse than 84% of 1056
companies
in the Media - Diversified industry
Industry Median: 1.45
vs XAMS:UMG: 0.61
Universal Music Group NV Quick Ratio Historical Data
The historical data trend for Universal Music Group NV's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Universal Music Group NV's Quick Ratio
For the Entertainment subindustry, Universal Music Group NV's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Universal Music Group NV's Quick Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's Quick Ratio falls into.
Universal Music Group NV Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Universal Music Group NV's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Universal Music Group NV (XAMS:UMG) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Universal Music Group NV Quick Ratio Related Terms
Thank you for viewing the detailed overview of Universal Music Group NV's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Universal Music Group NV (XAMS:UMG) Business Description
Universal Music Group is the largest of the three major global record labels with Sony Music in second and Warner Music in third. Universal's larger segment, recorded music, consists of iconic labels like Interscope, Capitol Music, Decca, EMI, and Motown and popular artists such as Drake, Taylor Swift, J Balvin, and Luke Bryan. Universal Music Publishing Group owns and administers almost 4 million compositions and is the second-largest music publisher behind Sony. Universal Music was spun out of Vivendi in September 2021, with 60% distributed to Vivendi shareholders, 20% to Tencent, 10% to Pershing Square Capital, and 10% remaining at Vivendi.
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