Warner Music Group (WMG)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,248,000 | 6,253,000 | 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 |
| Receivables | US$ in thousands | 1,255,000 | 1,222,000 | 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 |
| Receivables turnover | 4.98 | 5.12 | 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 |
September 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,248,000K ÷ $1,255,000K
= 4.98
Warner Music Group's receivables turnover has shown some fluctuations over the past few quarters. The receivables turnover ratio measures how many times a company collects its average accounts receivable during a specific period. A higher turnover ratio generally indicates that the company efficiently collects its outstanding invoices.
From December 2019 to September 2020, the receivables turnover ratio remained relatively stable between 5.13 and 5.79. However, by the end of 2020 and into early 2021, there was a slight decrease in the ratio, possibly indicating a longer collection period for receivables during this time.
The ratio then started to increase again, reaching its peak at 6.31 in September 2021 before showing some fluctuations between 6.02 and 6.27 throughout 2022. In the most recent quarters, the receivables turnover has ranged from 4.98 to 5.19, suggesting a slight decrease compared to the previous periods.
Overall, Warner Music Group's receivables turnover indicates that the company has been efficient in collecting its accounts receivable, although there have been some fluctuations in the ratio over the past few quarters. It is essential for the company to continue monitoring and managing its accounts receivable effectively to ensure timely collection and maintain a healthy cash flow.
Peer comparison
Sep 30, 2024