Warner Music Group (WMG)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,879,000 | 6,088,000 | 5,276,000 | 4,463,000 | 4,475,000 |
| Property, plant and equipment | US$ in thousands | 458,000 | 415,000 | 364,000 | 331,000 | 300,000 |
| Fixed asset turnover | 12.84 | 14.67 | 14.49 | 13.48 | 14.92 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,879,000K ÷ $458,000K
= 12.84
Warner Music Group's fixed asset turnover ratio has shown fluctuations over the past five years. The ratio was highest in 2022 at 14.67, indicating that the company generated $14.67 in revenue for every dollar invested in fixed assets. However, in 2023, the ratio decreased to 12.84, suggesting a decline in the efficiency of generating sales from fixed assets compared to the previous year. Despite this decrease, the company's fixed asset turnover remains relatively high, indicating effective utilization of its fixed assets to generate revenue. The trend in fixed asset turnover implies that Warner Music Group has been managing its fixed assets efficiently, albeit with some variability in performance over the years.
Peer comparison
Sep 30, 2023