Dolby Laboratories (DLB)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 182.68 | 169.57 | 164.24 | 177.80 | 151.04 | 155.94 | 146.94 | 140.78 | 126.25 | 19.69 | 14.68 | 84.69 | 74.91 | 110.76 | 136.38 | 138.27 | 108.39 | 146.47 | 150.23 | 91.87 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.62 + 140.20 – 45.15
= 182.68
The cash conversion cycle of Dolby Laboratories has shown fluctuations over the past few quarters. The cash conversion cycle represents the time it takes for a company to convert its resources into cash inflows, indicating the efficiency of its working capital management.
Dolby Laboratories experienced an increasing trend in its cash conversion cycle from December 2022 to September 2024, reaching a peak of 182.68 days in September 2024. This trend suggests that the company may be facing challenges in efficiently managing its working capital during this period.
A longer cash conversion cycle could indicate issues with inventory management, accounts receivable collection, or accounts payable payment delays. It may also imply that the company is taking longer to convert its resources into cash, potentially resulting in cash flow constraints.
On the other hand, the company showed a significant improvement in its cash conversion cycle from March 2022 to June 2022, where it decreased from 84.69 days to 19.69 days. This decrease indicates that Dolby Laboratories efficiently managed its working capital during this period, translating resources into cash more effectively.
Overall, fluctuations in Dolby Laboratories' cash conversion cycle reflect varying levels of efficiency in managing its working capital and highlight the importance of closely monitoring cash flow dynamics to ensure sustainable financial health.
Peer comparison
Sep 30, 2024