Warner Music Group (WMG)
Payables 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 |
| Payables | US$ in thousands | 289,000 | 300,000 | 268,000 | 302,000 | 264,000 |
| Payables turnover | 19.50 | 17.63 | 19.42 | 15.54 | 17.77 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,635,000K ÷ $289,000K
= 19.50
Warner Music Group's payables turnover has been fluctuating over the past five years, ranging from a low of 15.54 in 2021 to a high of 19.50 in 2024. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by paying off suppliers. A higher payables turnover ratio generally suggests that the company is effectively managing its short-term obligations and paying its suppliers in a timely manner.
The increasing trend in Warner Music Group's payables turnover from 2021 to 2024 indicates an improvement in the company's ability to pay its suppliers promptly. This may be attributed to better cash flow management practices or negotiation of favorable payment terms with suppliers. However, it is important to note that a significantly high payables turnover ratio may also raise concerns about the company potentially delaying payments to suppliers excessively, which could strain supplier relationships.
Overall, Warner Music Group's payables turnover ratio reflects its efficiency in managing its accounts payable and underscores the importance of maintaining a balance between timely payments to suppliers and sustaining healthy working relationships within the supply chain.
Peer comparison
Sep 30, 2024