Dolby Laboratories (DLB)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 656,816 | 745,364 | 765,079 | 688,443 | 626,158 | 620,127 | 858,905 | 900,393 | 1,056,690 | 1,225,380 | 1,219,650 | 1,104,570 | 1,110,020 | 1,071,880 | 855,103 | 724,931 | 741,429 | 797,210 | 716,560 | 726,596 |
| Short-term investments | US$ in thousands | 140,823 | 139,148 | 124,210 | 126,393 | 132,875 | 189,213 | 156,812 | 141,688 | 80,618 | 38,839 | 48,277 | 58,582 | 52,261 | 46,948 | 189,383 | 174,859 | 170,234 | 119,146 | 120,737 | 158,679 |
| 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 |
| Cash ratio | 2.02 | 2.09 | 2.10 | 2.59 | 2.61 | 2.92 | 3.56 | 3.71 | 4.01 | 4.00 | 4.10 | 3.76 | 3.67 | 4.19 | 4.05 | 2.93 | 3.11 | 2.99 | 3.01 | 3.33 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($656,816K
+ $140,823K)
÷ $394,096K
= 2.02
The cash ratio measures a company's ability to cover its short-term liabilities using only its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position and better ability to meet its obligations without relying on external sources.
Examining Dolby Laboratories' cash ratio over the past few quarters, we observe a generally stable trend with some fluctuations. The cash ratio ranged from 2.02 to 4.10, indicating that the company consistently maintained a strong ability to cover its short-term obligations with cash on hand.
The highest cash ratio recorded was 4.10 in the third quarter of 2021, suggesting a peak level of liquidity during that period. Conversely, the lowest cash ratio of 2.02 was observed in the fourth quarter of 2023, which was still above 2, indicating a sufficient level of cash reserves to meet short-term liabilities.
Overall, Dolby Laboratories' cash ratio has exhibited resilience and strength, reflecting the company's prudent liquidity management and ability to meet its financial commitments with ease. It is essential to continue monitoring this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health.
Peer comparison
Dec 31, 2023