Dolby Laboratories (DLB)
Total asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,273,720 | 1,299,740 | 1,253,790 | 1,281,260 | 1,161,790 |
| Total assets | US$ in thousands | 3,109,930 | 2,979,770 | 2,689,550 | 3,105,690 | 2,917,320 |
| Total asset turnover | 0.41 | 0.44 | 0.47 | 0.41 | 0.40 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,273,720K ÷ $3,109,930K
= 0.41
Dolby Laboratories' total asset turnover has shown fluctuations over the past five years. The ratio measures how efficiently the company generates revenue from its total assets. A lower total asset turnover ratio typically indicates that the company is less efficient in utilizing its assets to generate sales.
In this case, Dolby Laboratories' total asset turnover has ranged between 0.40 and 0.47 over the period, with the lowest ratio recorded in 2020 at 0.40 and the highest in 2022 at 0.47.
The declining trend in total asset turnover from 2022 to 2024 may indicate a decrease in the efficiency of Dolby Laboratories in generating revenue from its total assets. This could be a concerning trend as it suggests that the company may not be effectively utilizing its assets to drive sales, potentially impacting its overall financial performance. Further analysis of the company's operations and asset management strategies may be necessary to understand the underlying factors contributing to this trend and to identify opportunities for improvement.
Peer comparison
Sep 30, 2024