Warner Music Group (WMG)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,879,000 | 6,088,000 | 5,276,000 | 4,463,000 | 4,475,000 |
| Receivables | US$ in thousands | 1,120,000 | 984,000 | 839,000 | 771,000 | 775,000 |
| Receivables turnover | 5.25 | 6.19 | 6.29 | 5.79 | 5.77 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,879,000K ÷ $1,120,000K
= 5.25
Warner Music Group's receivables turnover ratio has exhibited some fluctuations over the past five years. The ratio indicates the number of times receivables are collected during a specific period. A higher receivables turnover ratio typically suggests that the company is more efficient in collecting outstanding receivables.
In 2023, the receivables turnover ratio decreased to 5.25 from 6.19 in 2022, indicating a slight decrease in the efficiency of collecting receivables compared to the previous year. However, it is still relatively healthy, implying that Warner Music Group is able to collect its outstanding receivables approximately 5.25 times during the year.
Comparing the current ratio with previous years, it is evident that the turnover ratio has fluctuated around the 5.75 to 6.29 range since 2019. This trend suggests that Warner Music Group has been reasonably consistent in collecting its receivables over the years.
Overall, while the slight decrease in the receivables turnover ratio in 2023 may warrant further investigation, Warner Music Group's historical performance indicates a relatively stable ability to efficiently collect outstanding receivables.
Peer comparison
Sep 30, 2023