Dolby Laboratories (DLB)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 152,566 | 141,360 | 130,025 | 146,498 | 160,854 |
| Inventory | US$ in thousands | 35,623 | 23,549 | 10,965 | 25,550 | 32,331 |
| Inventory turnover | 4.28 | 6.00 | 11.86 | 5.73 | 4.98 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $152,566K ÷ $35,623K
= 4.28
Inventory turnover represents how many times a company sells and replaces its average inventory during a specific period. A higher inventory turnover indicates that the company is managing its inventory efficiently and effectively.
Analyzing Dolby Laboratories' inventory turnover over the past five years, we observe fluctuations in the ratio. In 2021, Dolby Laboratories had a high inventory turnover of 11.86, indicating that the company sold and replaced its inventory almost 12 times during that year. This suggests efficient inventory management and possibly strong demand for its products.
The ratio decreased to 6.00 in 2022, which although lower than the previous year, still represents a reasonable turnover rate. In 2023, the inventory turnover further decreased to 4.28, which may indicate that Dolby Laboratories held onto its inventory for a longer period during that year, possibly due to changing market conditions or production challenges.
Comparing these figures to the industry average can provide further insight into Dolby Laboratories' inventory management efficiency. Overall, while the downward trend in inventory turnover raises some concerns, it is essential to consider other factors such as sales growth, production capacity, and market demand to assess the company's overall performance accurately.
Peer comparison
Sep 30, 2023