Warner Music Group (WMG)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,390,000 | 5,879,000 | 6,088,000 | 5,276,000 | 4,463,000 |
| Receivables | US$ in thousands | 1,255,000 | 1,120,000 | 984,000 | 839,000 | 771,000 |
| Receivables turnover | 5.09 | 5.25 | 6.19 | 6.29 | 5.79 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,390,000K ÷ $1,255,000K
= 5.09
Warner Music Group's receivables turnover has exhibited a fluctuating trend over the past five years, ranging from a low of 5.09 in 2024 to a high of 6.29 in 2021. The average collection period for receivables has been around 71.8 days, with a lower number indicating that the company is collecting its accounts receivable more quickly. The downward trend in receivables turnover since 2021 may suggest potential issues with the company's ability to efficiently collect outstanding receivables or tighten credit terms. Further examination is warranted to understand the underlying reasons for the fluctuations and to assess the impact on the company's overall cash flow and liquidity position.
Peer comparison
Sep 30, 2024