Universal Music Group NV (Universal Music Group NV) Accounts Receivable

: $2,242 Mil (As of Jun. 2023)

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Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Universal Music Group NV's accounts receivables for the quarter that ended in Jun. 2023 was $2,242 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Universal Music Group NV's Days Sales Outstanding for the quarter that ended in Jun. 2023 was 73.35.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Universal Music Group NV's Net-Net Working Capital per share for the quarter that ended in Jun. 2023 was $-4.58.

Universal Music Group NV Accounts Receivable Historical Data

The historical data trend for Universal Music Group NV's Accounts Receivable 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 Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Accounts Receivable

1,130.83

1,175.56

579.08

569.49

548.73

Universal Music Group NV Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Accounts Receivable					1,339.76	569.49	2,248.41	548.73	2,241.60

Universal Music Group NV Accounts Receivable Calculation

Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.

Universal Music Group NV Accounts Receivable Explanation

1. Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Days Sales Outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed.

Universal Music Group NV's Days Sales Outstanding for the quarter that ended in Jun. 2023 is calculated as:

	Days Sales Outstanding
=	Accounts Receivable	/	Revenue	*	Days in Period
=	2241.603	/	5577.465	*	91
=	73.35

2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), Universal Music Group NV's accounts receivable are only considered to be worth 75% of book value:

Universal Music Group NV's Net-Net Working Capital Per Share for the quarter that ended in Jun. 2023 is calculated as:

	Net-Net Working Capital Per Share
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(587.216	+	0.75 * 2241.603	+	0.5 * 221.018	-	10717.226
-	0	-	2.167)	/	1820.52
=	-4.58

Be Aware

Net receivables tells us a great deal about the different competitors in the same industry. In competitive industries, some attempt to gain advantage by offering better credit terms, causing increase in sales and receivables.

If company consistently shows lower % Net receivables to gross sales than competitors, then it usually has some kind of competitive advantage which requires further digging.

Average Days Sales Outstanding is a good indicator for measuring a company's sales channel and customers. A company may book great revenue and earnings growth but never receive payment from their customers. This may force a write-off in the future and depress future earnings.

Universal Music Group NV Accounts Receivable Related Terms

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Universal Music Group NV (Universal Music Group NV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Universal Music Group NV (OTCPK:UMGNF) » Definitions » Accounts Receivable

Comparable Companies

Traded in Other Exchanges

UNVGY:USA UMG:Netherlands 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.