Dolby Laboratories (DLB)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 140,496 | 152,566 | 141,360 | 130,025 | 146,498 |
| Payables | US$ in thousands | 17,380 | 20,925 | 14,171 | 17,779 | 12,617 |
| Payables turnover | 8.08 | 7.29 | 9.98 | 7.31 | 11.61 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $140,496K ÷ $17,380K
= 8.08
The payables turnover ratio measures how efficiently a company manages its trade payables by indicating the number of times the company pays off its suppliers within a given period. A higher payables turnover ratio generally signifies that the company is effectively managing its payables by paying suppliers quickly, which can improve relationships and potentially lead to better credit terms.
Looking at the payables turnover ratio for Dolby Laboratories over the past five years, we observe fluctuations in the ratio:
- In 2020, the payables turnover ratio was 11.61, indicating that Dolby Laboratories paid off its suppliers approximately 11.61 times during that fiscal year.
- The ratio decreased to 7.31 in 2021 before increasing to 9.98 in 2022, suggesting some variability in the company's payment patterns.
- In 2023, the ratio dropped to 7.29 before rising again to 8.08 in 2024.
Overall, the trend in Dolby Laboratories' payables turnover ratio shows some variability over the years, with fluctuations indicating changes in the company's payment practices and relationship with suppliers. Further investigation into the reasons behind these fluctuations could provide insights into the company's cash management strategies and relationships with its suppliers.
Peer comparison
Sep 30, 2024