Dolby Laboratories (DLB)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 150,176 | 152,566 | 154,193 | 148,635 | 143,101 | 141,360 | 134,880 | 130,567 | 127,430 | 130,025 | 141,791 | 140,035 | 144,487 | 146,498 | 149,993 | 159,795 | 159,540 | 160,854 | 146,153 | 140,846 |
| Inventory | US$ in thousands | 37,568 | 35,623 | 32,398 | 30,353 | 26,111 | 23,549 | 24,096 | 16,623 | 13,144 | 10,965 | 12,143 | 14,881 | 20,108 | 25,550 | 29,330 | 28,331 | 29,104 | 32,331 | 38,908 | 34,632 |
| Inventory turnover | 4.00 | 4.28 | 4.76 | 4.90 | 5.48 | 6.00 | 5.60 | 7.85 | 9.69 | 11.86 | 11.68 | 9.41 | 7.19 | 5.73 | 5.11 | 5.64 | 5.48 | 4.98 | 3.76 | 4.07 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $150,176K ÷ $37,568K
= 4.00
The inventory turnover ratio for Dolby Laboratories has shown fluctuations over the past few years, ranging from 3.76 to 11.86. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.
In the most recent period, the inventory turnover ratio stood at 4.00, which implies that on average, Dolby Laboratories sold and replaced its inventory 4 times during the year. The trend in inventory turnover has been declining from a peak of 11.86 in September 2021 to the current level of 4.00 in December 2023.
A decreasing trend in inventory turnover could indicate potential issues such as overstocking, slow-moving inventory, or challenges in sales and distribution channels. It may also suggest a need for the company to reassess its inventory management practices to optimize working capital and improve operational efficiency.
Further analysis of the factors affecting Dolby Laboratories' inventory turnover, such as changes in demand, production efficiency, and supply chain management, would provide deeper insights into the company's operational performance and potential areas for improvement.
Peer comparison
Dec 31, 2023
Dec 31, 2023