Warner Music Group (WMG)
Fixed asset turnover
| Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,248,000 | 6,253,000 | 6,217,000 | 6,116,000 | 5,907,000 | 5,889,000 | 5,802,000 | 5,817,000 | 6,017,000 | 5,838,000 | 5,734,000 | 5,608,000 | 5,293,000 | 5,039,000 | 4,721,000 | 4,542,000 | 4,463,000 | 4,461,000 | 4,509,000 | 4,528,000 |
| Property, plant and equipment | US$ in thousands | 481,000 | 464,000 | 462,000 | 466,000 | 458,000 | 454,000 | 440,000 | 430,000 | 415,000 | 403,000 | 386,000 | 378,000 | 364,000 | 347,000 | 339,000 | 334,000 | 331,000 | 310,000 | 294,000 | 295,000 |
| Fixed asset turnover | 12.99 | 13.48 | 13.46 | 13.12 | 12.90 | 12.97 | 13.19 | 13.53 | 14.50 | 14.49 | 14.85 | 14.84 | 14.54 | 14.52 | 13.93 | 13.60 | 13.48 | 14.39 | 15.34 | 15.35 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,248,000K ÷ $481,000K
= 12.99
Warner Music Group's fixed asset turnover ratio has shown a consistent and strong performance over the period from December 2019 to September 2024. The ratio has ranged between 12.90 and 15.35, indicating the company's ability to generate revenue relative to its investment in fixed assets. The higher fixed asset turnover ratios suggest that Warner Music Group is effectively utilizing its fixed assets to generate sales.
The upward trend in the fixed asset turnover ratio from 2020 to 2022 coupled with high values in 2022 and 2023 indicates an improvement in efficiency and asset utilization. However, there was a slight fluctuation in the ratio in 2024, possibly due to changes in asset base or revenue generation.
Overall, Warner Music Group's consistent high fixed asset turnover ratio reflects efficient management of its fixed assets, translating into a positive signal for potential investors and stakeholders looking at the company's operational efficiency and utilization of its asset base.
Peer comparison
Sep 30, 2024