Warner Music Group (WMG)
Payables 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 |
| Payables | US$ in thousands | 300,000 | 268,000 | 302,000 | 264,000 | 260,000 |
| Payables turnover | 17.63 | 19.42 | 15.54 | 17.77 | 15.84 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,288,000K ÷ $300,000K
= 17.63
Warner Music Group's payables turnover has shown fluctuations over the past five years. The payables turnover ratio measures how efficiently the company is managing its trade payables and paying off its suppliers. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.
In this case, Warner Music Group's payables turnover ratio was 17.63 in 2023, down from 19.42 in 2022 but higher compared to 2021 and 2019. This suggests that the company is taking longer to pay off its suppliers in 2023 compared to the previous year, which may indicate a change in the company's payment terms or liquidity position.
Overall, the trend in Warner Music Group's payables turnover indicates fluctuations in the company's payment practices and relationships with suppliers over the past five years. Further analysis and comparison to industry benchmarks would provide more insights into the company's financial management and efficiency in managing its working capital.
Peer comparison
Sep 30, 2023