Dolby Laboratories (DLB)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,280,397 | 1,299,744 | 1,287,386 | 1,278,601 | 1,237,081 | 1,253,793 | 1,260,614 | 1,257,828 | 1,243,015 | 1,281,256 | 1,267,422 | 1,227,532 | 1,259,789 | 1,161,792 | 1,189,428 | 1,244,678 | 1,231,121 | 1,241,620 | 1,208,118 | 1,120,739 |
| Total current assets | US$ in thousands | 1,451,360 | 1,487,800 | 1,469,360 | 1,462,600 | 1,349,420 | 1,310,890 | 1,504,720 | 1,621,570 | 1,695,140 | 1,760,500 | 1,772,880 | 1,751,150 | 1,724,670 | 1,547,200 | 1,503,440 | 1,459,570 | 1,401,010 | 1,381,540 | 1,338,820 | 1,395,760 |
| Total current liabilities | US$ in thousands | 394,096 | 422,226 | 423,036 | 314,011 | 290,447 | 277,518 | 285,485 | 280,959 | 283,290 | 315,717 | 308,965 | 308,977 | 316,419 | 267,109 | 257,702 | 307,254 | 293,459 | 306,853 | 278,339 | 265,450 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,280,397K ÷ ($1,451,360K – $394,096K)
= 1.21
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its operations and sales.
Analyzing Dolby Laboratories' working capital turnover ratio over the past few quarters, we observe fluctuations in the ratio. In the most recent quarter ending in December 2023, the working capital turnover ratio was 1.21, showing a slight decrease from the previous quarter's ratio of 1.22 in September 2023.
Looking back over the past year, there has been variability in the working capital turnover ratio for Dolby Laboratories, with the ratio ranging from a low of 0.85 in March 2021 to a high of 1.23 in June 2023. Generally, the trend has shown improvement as the company's working capital turnover ratio has increased over the quarters, indicating more efficient use of its working capital to support sales.
The upward trend in the working capital turnover ratio suggests that Dolby Laboratories has been able to generate more sales revenue relative to its investment in working capital. This improvement may be attributed to better inventory management, efficient accounts receivable collection, or streamlined payables processes.
Overall, the increasing working capital turnover ratio for Dolby Laboratories reflects positively on the company's operational efficiency and financial management in utilizing its working capital to drive revenue generation. However, continued monitoring of this ratio is essential to ensure sustained efficiency in working capital management.
Peer comparison
Dec 31, 2023