Dolby Laboratories (DLB)
Days of sales outstanding (DSO)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.00 | 3.15 | 3.15 | 3.19 | 3.08 | 3.58 | — | — | 3.59 | 3.88 | 3.29 | 3.06 | 2.99 | 4.79 | 3.67 | 3.44 | 6.45 | 5.04 | 5.23 | 6.27 | |
| DSO | days | 121.48 | 115.88 | 115.69 | 114.56 | 118.46 | 102.03 | — | — | 101.76 | 94.04 | 110.87 | 119.44 | 121.90 | 76.17 | 99.54 | 106.17 | 56.63 | 72.41 | 69.85 | 58.17 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.00
= 121.48
Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates quicker collection of accounts receivable, which is generally favorable as it reflects efficient credit management and liquidity.
Analyzing Dolby Laboratories' DSO trend from December 2019 to December 2023 reveals fluctuations in the collection period. The DSO for Dolby Laboratories ranged from a low of 56.63 days in March 2020 to a high of 121.90 days in December 2020, indicating variability in their collection efficiency.
The DSO decreased sharply in the first quarter of 2020 to 56.63 days, suggesting an efficient collection process during that period. The company saw a significant improvement in collecting receivables, possibly due to effective credit policies or a favorable shift in customer payment behavior.
However, in subsequent quarters, the DSO increased, peaking at 121.90 days in December 2020. This rise could indicate challenges in collecting payments promptly, which may lead to cash flow implications or inefficiencies in managing accounts receivable.
The DSO trend shows fluctuation in recent quarters, with the metric gradually decreasing from December 2020 to September 2021, reaching a low of 94.04 days in September 2021. This decline could be a positive sign of improving collection practices during that period.
From September 2021 to September 2022, the DSO increased consistently, reaching 118.46 days in December 2022. This upward trend suggests a longer period required to collect receivables, which could pose challenges in cash flow management and liquidity.
In the most recent quarters, the DSO has fluctuated between 115.69 days and 121.48 days, indicating a persistent need for Dolby Laboratories to focus on optimizing their accounts receivable collection processes to ensure a more stable and efficient cash flow cycle.
Overall, Dolby Laboratories' DSO trend reflects variability in collection efficiency over the analyzed period, with fluctuations suggesting a need for continuous monitoring and improvement in managing accounts receivable to enhance liquidity and financial performance.
Peer comparison
Dec 31, 2023