Warner Music Group (WMG)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,288,000 | 5,205,000 | 4,692,000 | 4,692,000 | 4,119,000 |
| Inventory | US$ in thousands | 126,000 | 108,000 | 99,000 | 79,000 | 74,000 |
| Inventory turnover | 41.97 | 48.19 | 47.39 | 59.39 | 55.66 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,288,000K ÷ $126,000K
= 41.97
Warner Music Group's inventory turnover has experienced fluctuations in recent years. The inventory turnover ratio reflects how efficiently the company manages its inventory by measuring how many times the company sells and replenishes its inventory during a specific period.
The decreasing trend in inventory turnover from 2019 to 2023 indicates that Warner Music Group is taking longer to sell its inventory, which could suggest inefficiencies in inventory management or potential issues with sales and demand forecasting. This trend may also indicate that Warner Music Group is carrying higher levels of inventory relative to the level of sales, which could tie up working capital and increase storage costs.
However, it is worth noting that inventory turnover ratios can vary significantly across industries, and the music industry, in particular, may have unique inventory management characteristics. Therefore, further analysis and comparison with industry benchmarks would provide more context on how Warner Music Group's inventory turnover performance compares to its peers.
Peer comparison
Sep 30, 2023