Dolby Laboratories (DLB)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,273,721 | 1,259,477 | 1,269,029 | 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 |
| Total current assets | US$ in thousands | 1,194,420 | 1,468,660 | 1,551,740 | 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 |
| Total current liabilities | US$ in thousands | 417,836 | 354,536 | 442,902 | 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 |
| 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,273,721K ÷ ($1,194,420K – $417,836K)
= 1.64
The working capital turnover ratio for Dolby Laboratories has fluctuated over the past several quarters. The ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.
From Dec 2019 to Sep 2020, the ratio increased steadily from 0.91 to 1.11, suggesting improved efficiency in managing working capital during this period. However, from Sep 2020 to Mar 2022, the ratio declined gradually, reaching a low of 0.88 in Mar 2022. This decrease may indicate potential inefficiencies in managing working capital or a decrease in revenue generation relative to the working capital employed.
Subsequently, from Mar 2022 to Sep 2024, the ratio showed some improvement, reaching a peak of 1.64 in Sep 2024. This increase signifies enhanced efficiency in utilizing working capital to drive revenue during this period.
Overall, Dolby Laboratories exhibited variability in its working capital turnover ratio, with periods of both improvement and decline. It is crucial for the company to maintain a balance between efficiently utilizing working capital and generating revenue to support long-term growth and sustainability.
Peer comparison
Sep 30, 2024