Warner Music Group (WMG)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.19 | 5.12 | 5.27 | 5.29 | 5.71 | 5.79 | 6.11 | 6.02 | 6.27 | 5.96 | 6.31 | 6.04 | 6.03 | 5.14 | 5.79 | 6.09 | 5.91 | 5.13 | 5.77 | 5.90 | |
| DSO | days | 70.28 | 71.32 | 69.21 | 68.98 | 63.98 | 63.00 | 59.69 | 60.65 | 58.18 | 61.25 | 57.86 | 60.41 | 60.54 | 71.04 | 63.06 | 59.89 | 61.76 | 71.10 | 63.21 | 61.86 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.19
= 70.28
Warner Music Group's Days Sales Outstanding (DSO) provides insight into how long it takes the company to collect its accounts receivable. A higher DSO indicates slower collection of receivables and may signal potential issues with credit policies or customer payments.
From the data provided, we observe fluctuations in DSO over the quarters, ranging from a low of 57.86 days to a high of 71.32 days. The trend indicates some variability in the company's collections efficiency. In general, DSO has been relatively stable around the 60-70 day range, with occasional peaks and troughs.
A lower DSO, such as the values seen in the quarters ending in Dec 2020 and Jun 2022, suggests efficient collections management and timely receipt of payments. Conversely, periods with higher DSO, like Mar 2020 and Dec 2019, could indicate slower collections possibly due to extended credit terms or difficulties in customer payments.
Overall, Warner Music Group should continue monitoring its DSO trend to ensure effective management of accounts receivable and prompt collection of outstanding payments to maintain healthy cash flows and working capital.
Peer comparison
Mar 31, 2024