Warner Music Group (WMG)
Payables 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 |
| Payables | US$ in thousands | 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 | 260,000 | 208,000 |
| Payables turnover | 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 | 15.84 | 19.46 |
March 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,549,000K ÷ $306,000K
= 18.13
Warner Music Group's payables turnover ratio has fluctuated over the past several quarters. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance during a period.
Based on the data provided, Warner Music Group's payables turnover ratio ranged from a low of 15.54 to a high of 23.21 over the past year. In general, a higher payables turnover ratio suggests that the company is paying its suppliers more frequently or quickly, which can be a positive sign of strong cash flow management.
The downward trend in the payables turnover ratio from the third quarter of 2022 to the first quarter of 2023 may indicate that Warner Music Group is taking longer to pay its suppliers during this period. However, the ratio increased in subsequent quarters, reaching a peak of 23.21 in the first quarter of 2020, which may suggest that the company improved its accounts payable management efficiency.
Overall, further analysis and context regarding Warner Music Group's industry benchmarks and overall financial performance would be needed to provide a more comprehensive assessment of the company's payables turnover ratio.
Peer comparison
Mar 31, 2024