Warner Music Group (WMG)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,549,000 | 5,435,000 | 5,288,000 | 5,248,000 | 5,159,000 | 5,094,000 | 5,205,000 | 5,147,000 | 5,039,000 | 4,928,000 | 4,692,000 | 4,444,000 | 4,709,000 | 4,730,000 | 4,692,000 | 4,759,000 | 4,316,000 | 4,164,000 | 4,119,000 | 4,047,000 |
| Inventory | US$ in thousands | 97,000 | 106,000 | 126,000 | 116,000 | 114,000 | 102,000 | 108,000 | 93,000 | 94,000 | 84,000 | 99,000 | 79,000 | 79,000 | 71,000 | 79,000 | 59,000 | 65,000 | 65,000 | 74,000 | 67,000 |
| Inventory turnover | 57.21 | 51.27 | 41.97 | 45.24 | 45.25 | 49.94 | 48.19 | 55.34 | 53.61 | 58.67 | 47.39 | 56.25 | 59.61 | 66.62 | 59.39 | 80.66 | 66.40 | 64.06 | 55.66 | 60.40 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,549,000K ÷ $97,000K
= 57.21
The inventory turnover for Warner Music Group has shown fluctuations over the past several quarters. The ratio has ranged from a low of 41.97 to a high of 80.66, with an average value around 55. This indicates the number of times the company's inventory was sold and replaced during the period. A higher turnover ratio suggests efficient inventory management, as the company is able to sell and replenish its inventory quickly.
The increase in inventory turnover from the prior quarter indicates that Warner Music Group has managed its inventory more effectively, potentially reducing holding costs and the risk of obsolescence. However, it is essential to monitor this ratio over time to ensure it aligns with industry standards and company projections. Additionally, further analysis of sales trends and inventory levels would provide a more comprehensive understanding of the company's inventory management efficiency.
Peer comparison
Mar 31, 2024
Mar 31, 2024