Dolby Laboratories (DLB)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.17 | 4.09 | 4.13 | 4.00 | 4.28 | 4.76 | 4.90 | 5.48 | 6.00 | 5.60 | 7.85 | 9.69 | 11.86 | 11.68 | 9.41 | 7.19 | 5.73 | 5.11 | 5.64 | 5.48 | |
| DOH | days | 87.62 | 89.20 | 88.34 | 91.31 | 85.22 | 76.69 | 74.54 | 66.60 | 60.80 | 65.21 | 46.47 | 37.65 | 30.78 | 31.26 | 38.79 | 50.80 | 63.66 | 71.37 | 64.71 | 66.58 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.17
= 87.62
The Days of Inventory on Hand (DOH) for Dolby Laboratories has fluctuated over the past few quarters. The DOH is used to measure how long it takes for a company to sell its inventory.
The trend of DOH for Dolby Laboratories shows an increase in inventory holding period in recent quarters, with the DOH increasing from 66.58 days in March 2020 to 89.20 days in June 2024. This indicates that Dolby Laboratories may be taking a longer time to sell its inventory, which could tie up capital and potentially lead to higher holding costs.
The significant increase in DOH from March 2022 to June 2024 is noteworthy, as it went from 46.47 days to 89.20 days. This may suggest inefficiencies in inventory management or changes in demand patterns impacting the company's ability to sell inventory quickly.
On the other hand, the lowest DOH of 30.78 days in December 2021 indicates an efficient inventory turnover rate, where Dolby Laboratories was able to sell its inventory relatively quickly during that period.
Overall, Dolby Laboratories may need to review its inventory management strategies to optimize inventory turnover and reduce the DOH, which could improve working capital efficiency and mitigate risks associated with holding excess inventory.
Peer comparison
Sep 30, 2024