Warner Music Group (WMG)
Total asset 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 |
| Total assets | US$ in thousands | 8,545,000 | 7,828,000 | 7,211,000 | 6,410,000 | 6,017,000 |
| Total asset turnover | 0.69 | 0.78 | 0.73 | 0.70 | 0.74 |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,879,000K ÷ $8,545,000K
= 0.69
The total asset turnover ratio of Warner Music Group has exhibited some fluctuation over the past five years. In the most recent fiscal year ending on September 30, 2023, the company achieved a total asset turnover ratio of 0.69, which indicates that the company generated $0.69 in revenue for every $1 of total assets. This represents a decrease from the previous year's ratio of 0.78.
The decreasing trend in the total asset turnover ratio over the past two years could imply that Warner Music Group is becoming less efficient in utilizing its assets to generate revenue. Lower total asset turnover ratios may suggest that the company is struggling to efficiently convert its investments in assets into sales.
It is important for Warner Music Group to closely monitor and address the factors contributing to the decline in total asset turnover ratio to improve operational efficiency and maximize revenue generation from its existing asset base. Further analysis and evaluation of the company's operational strategies and asset management practices may be necessary to identify areas for improvement and ensure sustainable growth in the future.
Peer comparison
Sep 30, 2023