WBDCAUTIOUS

WBD Current Ratio Analysis

0.73x

Higher than 6% of Communication Services sector peers

Updated 312h ago·SEC filings & market data

Key Takeaway

The current ratio of 0.73x means that WBD has only $0.73 in short-term assets for every $1.00 of short-term liabilities, indicating a potential liquidity shortfall.

Sector Performance

6th percentile

WBD

0.73x

Sector Median

1.89x

Sector Avg

2.93x

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Deep Analysis

The current ratio of 0.73x means that WBD has only $0.73 in short-term assets for every $1.00 of short-term liabilities, indicating a potential liquidity shortfall.

This is well below the Communication Services sector median of 1.85x, placing WBD in the 6th percentile among its peers—meaning 94% of sector companies have a higher current ratio. No year-over-year or quarter-over-quarter change data are available, and the trend direction over the last eight quarters is listed as N/A, so no movement can be assessed. The combination of a very low current ratio (below 1.0x) and the absence of trend information suggests a pressing near-term risk: the company may struggle to meet its upcoming obligations without external financing. This metric directly supports the overall CAUTIOUS verdict, as a ratio below 1.0x is a traditional red flag for financial instability, and the lack of any improving trend offers no offsetting comfort.

Frequently Asked Questions

What does the Current Ratio tell investors about WBD?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does WBD's Current Ratio compare to its sector?

WBD's Current Ratio of 0.73x compares to a Communication Services sector median of 1.89x, placing it in the 6th percentile.

Who are WBD's closest peers by Current Ratio?

The closest Communication Services peers by Current Ratio include: GOOG (1.92x), BIDU (1.85x), GOOGL (1.92x), YELP (1.74x), SPOT (2.06x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.