Dolby Laboratories (DLB)

Activity ratios

Short-term

Turnover ratios

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 4.17 4.09 4.13 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
Receivables turnover 2.60 2.98 2.93 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
Payables turnover 8.08 8.65 7.50 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
Working capital turnover 1.64 1.13 1.14 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

Dolby Laboratories' activity ratios provide insights into how efficiently the company is managing its operations and resources.

1. Inventory Turnover:
- Dolby Laboratories' inventory turnover has remained relatively stable over the periods, indicating that the company efficiently manages its inventory levels and sells its products at a steady pace.

2. Receivables Turnover:
- The receivables turnover ratio fluctuates but generally shows that Dolby Laboratories collects its receivables in a reasonable timeframe, with some variability in the efficiency of its credit management.

3. Payables Turnover:
- Dolby Laboratories' payables turnover ratio has also varied, suggesting changes in the speed at which the company pays its suppliers. The lower ratios may indicate a longer payment cycle, while the higher ratios suggest a more efficient management of accounts payable.

4. Working Capital Turnover:
- The working capital turnover ratio reveals the company's efficiency in generating revenue relative to its working capital. Dolby Laboratories' ratios have fluctuated, with some periods showing better utilization of working capital than others.

Overall, Dolby Laboratories' activity ratios indicate a mix of efficiency and variability in managing its inventory, receivables, payables, and working capital. Monitoring these ratios over time can help in assessing the company's operational performance and financial management practices.

Average number of days

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 87.62 89.20 88.34 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
Days of sales outstanding (DSO) days 140.20 122.54 124.58 121.48 115.88 115.69 114.56 118.46 102.03 — — 101.76 94.04 110.87 119.44 121.90 76.17 99.54 106.17 56.63
Number of days of payables days 45.15 42.17 48.68 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

Days of inventory on hand (DOH) for Dolby Laboratories have been fluctuating over the past few years, with an increasing trend observed from the end of 2020 to mid-2022, followed by a more volatile pattern. This indicates that the company has been holding inventory for a longer duration in recent periods, potentially tying up more capital in unsold goods.

Days of sales outstanding (DSO) have also varied, showing an upward trend from the end of 2020 to mid-2021 before fluctuating in subsequent periods. The company has been collecting sales receivables at a slower pace in recent years, which could lead to cash flow challenges if not managed efficiently.

The number of days of payables has shown some variability throughout the years, but there seems to be a general trend of increasing days of payables from 2019 to mid-2020, followed by fluctuations in the most recent periods. This indicates that Dolby Laboratories has been taking longer to pay its suppliers, potentially benefiting from improved working capital management.

Overall, Dolby Laboratories should focus on optimizing its inventory management to reduce holding costs, improving collection efforts to shorten DSO, and maintaining a balanced approach to payables to manage cash flow effectively in the long term.

Long-term

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 2.66 2.64 2.64 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
Total asset turnover 0.41 0.42 0.42 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

The fixed asset turnover ratio for Dolby Laboratories has been relatively stable over the past few quarters, ranging between 2.38 and 2.70. This indicates that Dolby Laboratories generates between 2.38 to 2.70 dollars in revenue for every dollar invested in fixed assets. The consistency in this ratio suggests efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also shown consistency, fluctuating between 0.40 and 0.47. This ratio reflects Dolby Laboratories' ability to generate revenue from all its assets, not just fixed assets. A total asset turnover ratio of less than 1 indicates that the company is productive in generating revenue in relation to its total asset base.

Overall, the fixed asset turnover and total asset turnover ratios suggest that Dolby Laboratories is effectively using its assets to generate sales, with consistent performance in leveraging both fixed and total assets to drive revenue.