Dolby Laboratories (DLB)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,194,420 | 1,487,800 | 1,310,890 | 1,760,500 | 1,547,200 |
| Total current liabilities | US$ in thousands | 417,836 | 422,226 | 277,518 | 315,717 | 267,109 |
| Current ratio | 2.86 | 3.52 | 4.72 | 5.58 | 5.79 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,194,420K ÷ $417,836K
= 2.86
The current ratio of Dolby Laboratories has exhibited a declining trend over the past five years, decreasing from 5.79 in 2020 to 2.86 in 2024. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position, as there are more current assets available to cover current liabilities.
The decreasing current ratio of Dolby Laboratories may raise concerns about its short-term liquidity management. A significant decline in the current ratio could indicate potential difficulties in meeting short-term obligations or an inefficient management of current assets and liabilities.
It is important for investors and stakeholders to further investigate the underlying reasons for the decreasing trend in the current ratio and assess the company's overall liquidity position in conjunction with other financial metrics. Additional analysis of factors such as cash flow, working capital management, and operational efficiency may provide insights into Dolby Laboratories' ability to meet its short-term obligations successfully.
Peer comparison
Sep 30, 2024