Dolby Laboratories (DLB)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 745,364 | 620,127 | 1,225,380 | 1,071,880 | 797,210 |
| Short-term investments | US$ in thousands | 139,148 | 189,213 | 38,839 | 46,948 | 119,146 |
| Total current liabilities | US$ in thousands | 422,226 | 277,518 | 315,717 | 267,109 | 306,853 |
| Cash ratio | 2.09 | 2.92 | 4.00 | 4.19 | 2.99 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($745,364K
+ $139,148K)
÷ $422,226K
= 2.09
The cash ratio of Dolby Laboratories has shown a decreasing trend over the past five years, starting at 2.99 in 2019 and declining to 2.09 in 2023. This ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio is usually preferred as it suggests a better liquidity position.
Despite the downward trend, Dolby Laboratories still maintains a relatively strong cash ratio, indicating its ability to meet its short-term obligations using its cash reserves. It is important for investors and stakeholders to monitor the company's cash management practices and financial health to ensure its continued ability to meet its financial commitments.
Peer comparison
Sep 30, 2023