Dolby Laboratories (DLB)
Payables 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 |
| Payables | US$ in thousands | 14,395 | 20,925 | 15,395 | 17,170 | 17,361 | 14,171 | 16,821 | 11,373 | 19,104 | 17,779 | 12,187 | 8,385 | 13,631 | 12,617 | 10,047 | 9,041 | 13,700 | 15,212 | 14,304 | 14,626 |
| Payables turnover | 10.43 | 7.29 | 10.02 | 8.66 | 8.24 | 9.98 | 8.02 | 11.48 | 6.67 | 7.31 | 11.63 | 16.70 | 10.60 | 11.61 | 14.93 | 17.67 | 11.65 | 10.57 | 10.22 | 9.63 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $150,176K ÷ $14,395K
= 10.43
The payables turnover ratio measures how efficiently a company is managing its outstanding payables (suppliers, vendors, etc.). It calculates how many times during a period a company pays off its average accounts payable balance. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which can be a positive sign of good liquidity management.
Analyzing Dolby Laboratories' payables turnover ratio over the past few quarters, we can see fluctuations in the ratio. The ratio ranged from a low of 6.67 to a high of 17.67, with an average ratio of approximately 10.33 over the past five quarters.
In the most recent quarter, the payables turnover ratio was 10.43, indicating that Dolby Laboratories is paying its suppliers approximately 10.43 times a year. This represents an improvement compared to the previous quarter's ratio of 7.29. An increase in the payables turnover ratio can suggest that the company is managing its payments more efficiently.
It is essential to consider the payables turnover ratio in conjunction with other financial ratios and metrics to get a comprehensive understanding of Dolby Laboratories' financial health and operational efficiency. Additionally, trends in the payables turnover ratio over time can provide insights into the company's ability to manage its working capital effectively and maintain good relationships with its suppliers.
Peer comparison
Dec 31, 2023