Dolby Laboratories (DLB)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.28 | 6.00 | 11.86 | 5.73 | 4.98 | |
| DOH | days | 85.22 | 60.80 | 30.78 | 63.66 | 73.36 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.28
= 85.22
The days of inventory on hand (DOH) for Dolby Laboratories have shown variability over the past five years. In Sep 30, 2023, the company had 85.22 days of inventory on hand, which is a significant increase from the previous year. This indicates that Dolby Laboratories may be carrying excess inventory relative to its sales volume, which could tie up capital and increase holding costs.
Compared to Sep 30, 2021, when the DOH was 30.78 days, the current level suggests a notable lengthening of the inventory holding period. This suggests a potential inefficiency in managing inventory levels, which could impact liquidity and profitability.
In analyzing trends over the past five years, the DOH has fluctuated, with peaks and troughs observed in different years. The highest DOH of 85.22 days in 2023 and the lowest of 30.78 days in 2021 indicate significant variations in inventory management efficiency by Dolby Laboratories during this period.
Overall, Dolby Laboratories should focus on optimizing its inventory management processes to ensure that it maintains an appropriate level of inventory relative to sales volume, strike a balance between stock availability and costs, and enhance overall operational efficiency.
Peer comparison
Sep 30, 2023