Warner Music Group (WMG)
Total asset 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 |
| Total assets | US$ in thousands | 9,155,000 | 8,545,000 | 7,828,000 | 7,211,000 | 6,410,000 |
| Total asset turnover | 0.70 | 0.69 | 0.78 | 0.73 | 0.70 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,390,000K ÷ $9,155,000K
= 0.70
Warner Music Group's total asset turnover has exhibited fluctuations over the past five years. The ratio stood at 0.70 in 2024, which indicates that for every dollar of assets the company holds, it generated $0.70 in revenue. Compared to 2023 and 2020 where the total asset turnover was also recorded at 0.70, there appears to be consistency in the company's ability to generate revenue relative to its asset base. However, it is important to note a slight decrease in 2023 to 0.69, which may indicate a slight decrease in efficiency in asset utilization.
In 2022, the total asset turnover increased to 0.78, reaching its highest point in the last five years. This suggests that Warner Music Group was able to generate more revenue per dollar of assets invested, potentially indicating improved efficiency in asset utilization during that period. However, this improvement was not sustained as the ratio decreased to 0.73 in 2021, showing a slight decline in the company's ability to generate revenue relative to its asset base.
Overall, Warner Music Group's total asset turnover has shown variability over the past five years, with fluctuations in efficiency in utilizing its assets to generate revenue. Further analysis of the company's operations and asset management practices could provide more insights into the factors driving these changes in total asset turnover.
Peer comparison
Sep 30, 2024