Warner Music Group (WMG)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,635,000 | 5,522,000 | 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 |
| Payables | US$ in thousands | 289,000 | 200,000 | 306,000 | 246,000 | 300,000 | 249,000 | 282,000 | 220,000 | 268,000 | 265,000 | 320,000 | 274,000 | 302,000 | 226,000 | 235,000 | 214,000 | 264,000 | 205,000 | 246,000 | 202,000 |
| Payables turnover | 19.50 | 27.61 | 18.13 | 22.09 | 17.63 | 21.08 | 18.29 | 23.15 | 19.42 | 19.42 | 15.75 | 17.99 | 15.54 | 19.66 | 20.04 | 22.10 | 17.77 | 23.21 | 17.54 | 20.61 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,635,000K ÷ $289,000K
= 19.50
Warner Music Group's payables turnover ratio has fluctuated over the past few quarters. The ratio indicates the number of times the company pays off its accounts payable during a specific period. A higher ratio is generally preferable as it suggests that the company is efficiently managing its trade credit obligations.
In the most recent period, the payables turnover ratio was 19.50, which indicates that Warner Music Group paid off its accounts payable approximately 19.50 times during the period. This suggests that the company is effectively managing its payables and potentially benefiting from favorable credit terms with its suppliers.
Looking at the trend over the past few quarters, we observe some variability in the payables turnover ratio. It peaked at 27.61 in June 2024 and has shown fluctuations since then. It reached a low of 15.54 in March 2022 before increasing again. This variability could be due to changes in the company's purchasing patterns, payment terms with suppliers, or improvements in working capital management.
Overall, Warner Music Group's payables turnover ratio has shown some volatility but has generally remained at levels indicating effective management of accounts payable. It is essential for the company to continue monitoring and optimizing its payables turnover to ensure efficient use of working capital and strong supplier relationships.
Peer comparison
Sep 30, 2024