Dolby Laboratories (DLB)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 482,047 | 745,364 | 620,127 | 1,225,380 | 1,071,880 |
| Short-term investments | US$ in thousands | 0 | 139,148 | 189,213 | 38,839 | 46,948 |
| Total current liabilities | US$ in thousands | 417,836 | 422,226 | 277,518 | 315,717 | 267,109 |
| Cash ratio | 1.15 | 2.09 | 2.92 | 4.00 | 4.19 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($482,047K
+ $0K)
÷ $417,836K
= 1.15
The cash ratio of Dolby Laboratories has shown a declining trend over the past five years. The ratio has decreased from 4.19 in September 2020 to 1.15 in September 2024. This indicates that Dolby Laboratories may have a lower level of cash and cash equivalents relative to its current liabilities in recent years.
A cash ratio of 1.15 in September 2024 suggests that Dolby Laboratories had $1.15 in cash and cash equivalents for every dollar of current liabilities, indicating a lower liquidity position compared to the previous years. This declining trend in the cash ratio may raise concerns about the company's ability to cover its short-term obligations solely with its available cash resources.
It is advisable for Dolby Laboratories to closely monitor its liquidity position and consider implementing strategies to improve its cash reserves to ensure it can meet its short-term financial obligations effectively. This may involve optimizing working capital management, enhancing cash flow generation, or potentially securing additional sources of liquidity.
Peer comparison
Sep 30, 2024