Name: Receivables Turnover

Definition: Receivables turnover tells you how quickly the company collects payments from customers after making sales on credit. A high turnover means customers pay on time and cash flows smoothly. Slow turnover suggests delayed collections, which can create cash shortages and financing stress.

Interpretation:
• In '2021', WMG's receivables turnover was 6.32, showing efficiency in collecting outstanding receivables. Industry average for Services-Misc. Amusement & Recreation in '2021' stood at 4.64.
• In '2022', WMG's receivables turnover was 6.49, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Services-Misc. Amusement & Recreation in '2022' stood at 4.71. Industry average increased by 0.07 compared to previous year.
• In '2023', WMG's receivables turnover was 5.74, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Services-Misc. Amusement & Recreation in '2023' stood at 5.30. Industry average increased by 0.59 compared to previous year.
• In '2024', WMG's receivables turnover was 5.41, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Services-Misc. Amusement & Recreation in '2024' stood at 4.66. Industry average declined by 0.64 from previous year.
Overall, WMG's receivables turnover has consistently declined during the past 4 years.

Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable

Good Range: Ranges 5 to 15 depending on credit terms.