Warner Music Group (WMG)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,217,000 | 6,116,000 | 5,907,000 | 5,889,000 | 5,802,000 | 5,817,000 | 6,017,000 | 5,838,000 | 5,734,000 | 5,608,000 | 5,293,000 | 5,039,000 | 4,721,000 | 4,542,000 | 4,463,000 | 4,461,000 | 4,509,000 | 4,528,000 | 4,475,000 | 4,390,000 |
| Receivables | US$ in thousands | 1,197,000 | 1,195,000 | 1,120,000 | 1,113,000 | 1,017,000 | 1,004,000 | 984,000 | 970,000 | 914,000 | 941,000 | 839,000 | 834,000 | 783,000 | 884,000 | 771,000 | 732,000 | 763,000 | 882,000 | 775,000 | 744,000 |
| Receivables turnover | 5.19 | 5.12 | 5.27 | 5.29 | 5.71 | 5.79 | 6.11 | 6.02 | 6.27 | 5.96 | 6.31 | 6.04 | 6.03 | 5.14 | 5.79 | 6.09 | 5.91 | 5.13 | 5.77 | 5.90 |
March 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,217,000K ÷ $1,197,000K
= 5.19
Warner Music Group's receivables turnover ratio has shown some fluctuations over the past several quarters. The receivables turnover ratio indicates how efficiently the company is collecting its accounts receivable. A higher turnover ratio generally signifies that the company is more effectively converting its receivables into cash.
Looking at the trend, we observe that the receivables turnover ratio has generally been above 5, indicating that Warner Music Group is collecting its receivables relatively quickly. However, there have been some variations in the ratio over time, ranging from a low of 5.12 to a peak of 6.31.
The most recent data for March 31, 2024, shows a receivables turnover ratio of 5.19, which is slightly lower compared to the previous quarter. This may suggest a minor decrease in the efficiency of collecting receivables compared to the prior quarter.
Overall, Warner Music Group's receivables turnover ratio reflects a consistent trend of efficient receivables management, although some fluctuations in the ratio indicate potential changes in the company's collection practices or customer credit policies. Monitoring this ratio over time can provide valuable insights into the company's financial health and operational efficiency.
Peer comparison
Mar 31, 2024