Warner Music Group (WMG)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,635,000 | 5,288,000 | 5,205,000 | 4,692,000 | 4,692,000 |
| Inventory | US$ in thousands | 99,000 | 126,000 | 108,000 | 99,000 | 79,000 |
| Inventory turnover | 56.92 | 41.97 | 48.19 | 47.39 | 59.39 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,635,000K ÷ $99,000K
= 56.92
Warner Music Group's inventory turnover has fluctuated over the past five years. In 2024, the inventory turnover ratio was 56.92, indicating that the company sold and replaced its inventory approximately 56.92 times during the year. This represents an increase from the previous year's ratio of 41.97.
The upward trend in inventory turnover suggests that Warner Music Group is managing its inventory more efficiently in recent years. This could be a positive sign of effective inventory management practices, such as improved forecasting, better inventory control, or streamlined operations.
However, it's important to note that a very high inventory turnover ratio may also indicate potential risks, such as stock-outs or overstocking. Therefore, Warner Music Group should continue to monitor its inventory turnover ratio and ensure that it aligns with industry standards and the company's strategic objectives.
Peer comparison
Sep 30, 2024