Dolby Laboratories (DLB)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,299,740 | 1,253,790 | 1,281,260 | 1,161,790 | 1,241,620 |
| Property, plant and equipment | US$ in thousands | 481,581 | 513,481 | 534,381 | 541,963 | 537,432 |
| Fixed asset turnover | 2.70 | 2.44 | 2.40 | 2.14 | 2.31 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,299,740K ÷ $481,581K
= 2.70
The fixed asset turnover ratio measures the efficiency with which Dolby Laboratories generates revenue from its fixed assets. A higher ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
Over the past five years, Dolby Laboratories has shown a consistent improvement in its fixed asset turnover ratio. The ratio has increased from 2.31 in 2019 to 2.70 in 2023. This indicates that the company has been able to generate more revenue per dollar invested in fixed assets.
The upward trend in the fixed asset turnover ratio suggests that Dolby Laboratories has been successful in optimizing the utilization of its fixed assets to drive revenue growth. This improvement may be attributed to operational efficiencies, better asset management, or increased demand for its products and services.
Overall, the increasing trend 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, 2023