Universal Music Group NV (XAMS:UMG) Inventory Turnover : 16.41 (As of Dec. 2023)

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What is Universal Music Group NV Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Universal Music Group NV's Cost of Goods Sold for the six months ended in Dec. 2023 was €3,397 Mil. Universal Music Group NV's Average Total Inventories for the quarter that ended in Dec. 2023 was €207 Mil. Universal Music Group NV's Inventory Turnover for the quarter that ended in Dec. 2023 was 16.41.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Universal Music Group NV's Days Inventory for the six months ended in Dec. 2023 was 11.12.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Universal Music Group NV's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.03.

Universal Music Group NV Inventory Turnover Historical Data

The historical data trend for Universal Music Group NV's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Universal Music Group NV Inventory Turnover Chart

Universal Music Group NV Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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43.89

46.36

51.78

43.92

33.29

Universal Music Group NV Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial					27.84	22.98	21.62	15.32	16.41

Universal Music Group NV Inventory Turnover Calculation

Universal Music Group NV's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	6208	/ (	(163	+	210)	/	2 )
=	6208	/	186.5
=	33.29

Universal Music Group NV's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	3397	/ (	(204	+	210)	/	2 )
=	3397	/	207
=	16.41

Universal Music Group NV (XAMS:UMG) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Universal Music Group NV's Days Inventory for the six months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	207	/	3397	*	365 / 2
	=	11.12

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Universal Music Group NV's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	207	/	5960
	=	0.03

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Universal Music Group NV Inventory Turnover Related Terms

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Universal Music Group NV (XAMS:UMG) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Universal Music Group NV (XAMS:UMG) » Definitions » Inventory Turnover

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UNVGY:USA UMGNF:USA UMGa:UK 0VD:Germany UMG:Austria

Address

Gravelandseweg 80, Hilversum, NH, NLD, 1217 EW

Website

https://www.universalmusic.com

Universal Music Group is the largest of the three major global record labels with Sony Music in second and Warner Music in third. Universal's larger segment, recorded music, consists of iconic labels like Interscope, Capitol Music, Decca, EMI, and Motown and popular artists such as Drake, Taylor Swift, J Balvin, and Luke Bryan. Universal Music Publishing Group owns and administers almost 4 million compositions and is the second-largest music publisher behind Sony. Universal Music was spun out of Vivendi in September 2021, with 60% distributed to Vivendi shareholders, 20% to Tencent, 10% to Pershing Square Capital, and 10% remaining at Vivendi.

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