Dolby Laboratories (DLB)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,273,720 | 1,299,740 | 1,253,790 | 1,281,260 | 1,161,790 |
| Property, plant and equipment | US$ in thousands | 479,109 | 481,581 | 513,481 | 534,381 | 541,963 |
| Fixed asset turnover | 2.66 | 2.70 | 2.44 | 2.40 | 2.14 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,273,720K ÷ $479,109K
= 2.66
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. Dolby Laboratories has shown a consistent improvement in its fixed asset turnover over the past five years. The ratio has increased from 2.14 in 2020 to 2.66 in 2024, indicating that the company is utilizing its fixed assets more effectively to generate sales.
A higher fixed asset turnover ratio suggests that Dolby Laboratories is efficiently utilizing its fixed assets, such as property, plant, and equipment, to generate revenue. This improvement in efficiency could be attributed to effective management of resources, investments in technology, or enhancements in operational processes.
Overall, the consistent improvement in Dolby Laboratories' fixed asset turnover ratio reflects positively on the company's operational efficiency and ability to generate revenue from its fixed assets.
Peer comparison
Sep 30, 2024