Dolby Laboratories (DLB)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 3.00 3.15 3.15 3.19 3.08 3.58 — — 3.59 3.88 3.29 3.06 2.99 4.79 3.67 3.44 6.45 5.04 5.23 6.27
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
Working capital turnover 1.21 1.22 1.23 1.11 1.17 1.21 1.03 0.94 0.88 0.89 0.87 0.85 0.89 0.91 0.95 1.08 1.11 1.16 1.14 0.99

Dolby Laboratories' activity ratios provide insights into its efficiency in managing its assets and liabilities to generate sales.

1. Inventory Turnover: The trend of Dolby's inventory turnover ratio shows a fluctuating pattern over the periods analyzed. There was a noticeable decrease from 5.48 in Dec 2022 to 4.00 in Dec 2023. This indicates that Dolby is taking longer to sell its inventory, which could potentially tie up capital and increase holding costs.

2. Receivables Turnover: Dolby's receivables turnover ratio remained relatively stable around 3.00 to 3.59 throughout the periods. This suggests that the company is collecting its receivables at a consistent pace, ensuring good cash flow and efficient credit management.

3. Payables Turnover: Dolby's payables turnover ratio shows significant variability, ranging from 6.67 to 17.67. A higher turnover ratio indicates that Dolby is paying its suppliers more frequently, potentially benefiting from early payment discounts. However, a sharp increase in this ratio could also indicate a strain on liquidity.

4. Working Capital Turnover: The working capital turnover ratio fluctuated between 0.85 to 1.23, indicating Dolby's ability to generate sales relative to its working capital. A higher ratio suggests efficient utilization of working capital to generate revenue, while a lower ratio may indicate excess working capital not being effectively employed.

Overall, Dolby Laboratories' activity ratios reflect a mix of performance in managing inventory, receivables, payables, and working capital over the periods analyzed. Further analysis and comparison with industry benchmarks would provide a more comprehensive view of the company's operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 91.31 85.22 76.69 74.54 66.60 60.80 65.21 46.47 37.65 30.78 31.26 38.79 50.80 63.66 71.37 64.71 66.58 73.36 97.17 89.75
Days of sales outstanding (DSO) days 121.48 115.88 115.69 114.56 118.46 102.03 — — 101.76 94.04 110.87 119.44 121.90 76.17 99.54 106.17 56.63 72.41 69.85 58.17
Number of days of payables days 34.99 50.06 36.44 42.16 44.28 36.59 45.52 31.79 54.72 49.91 31.37 21.86 34.43 31.44 24.45 20.65 31.34 34.52 35.72 37.90

Days of Inventory on Hand (DOH) for Dolby Laboratories have been fluctuating over the past five years, ranging from a low of 30.78 days to a high of 97.17 days. The trend seems to be increasing in recent periods, indicating that Dolby is taking longer to convert its inventory into sales.

Days of Sales Outstanding (DSO) have also varied, with a range of 56.63 days to 121.90 days. The data shows some volatility in DSO, but there seems to be a decreasing trend overall, suggesting that Dolby has been able to collect its receivables more efficiently in recent periods.

The Number of Days of Payables has ranged from 20.65 days to 54.72 days. This metric has shown fluctuations throughout the years, but there seems to be a trend of increasing days of payables in recent periods, indicating that Dolby has been taking longer to pay its suppliers.

Overall, the activity ratios indicate that Dolby Laboratories has been facing challenges in managing its inventory efficiently, but has shown improvements in collecting receivables. However, the increasing trend in days of payables may raise concerns about potential cash flow issues or strained relationships with suppliers.

Long-term

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
Fixed asset turnover 2.67 2.70 2.57 2.52 2.42 2.44 2.43 2.38 2.33 2.40 2.35 2.26 2.32 2.14 2.18 2.26 2.24 2.31 2.30 2.08
Total asset turnover 0.44 0.44 0.43 0.45 0.45 0.47 0.43 0.41 0.40 0.41 0.40 0.40 0.41 0.40 0.41 0.42 0.43 0.44 0.43 0.39

Dolby Laboratories' fixed asset turnover ratio has been relatively stable over the past few years, hovering around 2.40-2.70. This indicates that the company generates approximately $2.40-$2.70 in revenue for every dollar invested in fixed assets. The slight fluctuations in this ratio suggest that Dolby Laboratories has been effectively utilizing its fixed assets to generate sales revenue.

On the other hand, the total asset turnover ratio for Dolby Laboratories has been consistently low, ranging from 0.39-0.47. This signifies that the company generates only around $0.39-$0.47 in revenue for every dollar invested in total assets. The stability of this ratio suggests that Dolby Laboratories may have a relatively asset-intensive business model, where a significant portion of its assets is not actively generating sales.

In conclusion, Dolby Laboratories' long-term activity ratios indicate that the company efficiently utilizes its fixed assets to generate revenue, although its overall asset turnover is relatively low compared to industry averages. This suggests potential room for improvement in optimizing the utilization of total assets to enhance operational efficiency and profitability.