Dolby Laboratories (DLB)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,299,740 | 1,253,790 | 1,281,260 | 1,161,790 | 1,241,620 |
| Total current assets | US$ in thousands | 1,487,800 | 1,310,890 | 1,760,500 | 1,547,200 | 1,381,540 |
| Total current liabilities | US$ in thousands | 422,226 | 277,518 | 315,717 | 267,109 | 306,853 |
| Working capital turnover | 1.22 | 1.21 | 0.89 | 0.91 | 1.16 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,299,740K ÷ ($1,487,800K – $422,226K)
= 1.22
Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher turnover indicates that the company is effectively managing its working capital to support its operations.
Looking at Dolby Laboratories' working capital turnover over the past five years, we observe fluctuations in the ratio. In 2023, the working capital turnover was 1.22, showing an improvement compared to the previous year's ratio of 1.21. This suggests that Dolby Laboratories was able to generate more revenue relative to its working capital in 2023.
In 2021 and 2020, the working capital turnover was 0.89 and 0.91, respectively, which were comparatively lower than the other years. This indicates that Dolby Laboratories may have faced challenges in efficiently utilizing its working capital to drive sales during these years.
However, in 2019, the working capital turnover was 1.16, reflecting a better performance in converting working capital into sales revenue compared to 2021 and 2020.
Overall, Dolby Laboratories' working capital turnover has shown variability over the years, with improvements in some years and declines in others. This ratio provides insights into the company's efficiency in managing its working capital, and further analysis of the underlying factors influencing these fluctuations would be beneficial to understand the overall financial health and operational efficiency of the company.
Peer comparison
Sep 30, 2023