Warner Music Group (WMG)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 41.97 | 48.19 | 47.39 | 59.39 | 55.66 | |
| DOH | days | 8.70 | 7.57 | 7.70 | 6.15 | 6.56 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 41.97
= 8.70
Warner Music Group's days of inventory on hand (DOH) has shown fluctuations over the past five years. The DOH measure indicates the average number of days it takes for the company to sell its inventory.
In 2023, Warner Music Group had 8.70 days of inventory on hand, which represents an increase from the previous year and suggests that the company may be holding onto its inventory for a longer period before selling it. This could potentially indicate slower inventory turnover and tie up capital in unsold inventory.
Comparing to 2022, where the DOH was 7.57 days, there has been a noticeable increase in the amount of time inventory is being held before being sold. The trend is also visible when comparing to 2021, which had a DOH of 7.70 days.
In contrast, in 2020 and 2019, Warner Music Group had lower DOH at 6.15 days and 6.56 days, respectively. This suggests that the company was more efficient in managing its inventory during those years by selling it off quicker.
Overall, the increasing trend in days of inventory on hand for Warner Music Group in recent years may indicate a need for the company to focus on improving inventory management practices to enhance efficiency and optimize working capital utilization.
Peer comparison
Sep 30, 2023