Dolby Laboratories (DLB)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.15 | 3.58 | 3.88 | 4.79 | 5.04 | |
| DSO | days | 115.88 | 102.03 | 94.04 | 76.17 | 72.41 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.15
= 115.88
The Days Sales Outstanding (DSO) ratio for Dolby Laboratories has shown a generally increasing trend over the past five years. In the most recent fiscal year, as of September 30, 2023, the DSO stood at 115.88 days, indicating that on average, it takes the company approximately 115.88 days to collect its accounts receivable.
Comparing this figure to prior years, we observe a steady rise in the DSO metric. In the fiscal year ending September 30, 2022, the DSO was 102.03 days, which increased from 94.04 days in 2021, 76.17 days in 2020, and 72.41 days in 2019.
The upward trend in DSO may suggest that Dolby Laboratories is taking longer to collect payments from its customers, which could potentially indicate challenges in managing accounts receivable efficiently. This could lead to liquidity issues or an increase in credit risk if customers are not paying in a timely manner.
It is important for the company to closely monitor its DSO metric and take proactive measures to streamline its accounts receivable collection process to ensure optimal cash flow management and mitigate any potential risks associated with delayed payments.
Peer comparison
Sep 30, 2023