Dolby Laboratories (DLB)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.68 | 3.52 | 3.47 | 4.66 | 4.65 | 4.72 | 5.27 | 5.77 | 5.98 | 5.58 | 5.74 | 5.67 | 5.45 | 5.79 | 5.83 | 4.75 | 4.77 | 4.50 | 4.81 | 5.26 |
| Quick ratio | 3.11 | 3.07 | 3.07 | 3.87 | 4.00 | 4.18 | 3.56 | 3.71 | 5.24 | 5.05 | 5.35 | 5.06 | 5.00 | 5.10 | 5.31 | 4.11 | 3.76 | 3.79 | 3.84 | 4.01 |
| 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 |
Dolby Laboratories has demonstrated strong liquidity levels based on its current, quick, and cash ratios. The current ratio has generally been above 3, indicating that the company has more than enough current assets to cover its current liabilities. Similarly, the quick ratio has consistently been above 3, suggesting that the company has a comfortable level of liquid assets to cover its short-term obligations without relying on inventory.
Moreover, the cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has also been healthy, consistently above 2. This indicates that Dolby Laboratories has a sufficient amount of cash readily available to meet its short-term financial obligations.
Overall, Dolby Laboratories' liquidity ratios suggest that the company is well-positioned to meet its short-term financial obligations and has strong financial health in terms of liquidity.
Additional liquidity measure
| 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 conversion cycle | days | 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 | 111.25 | 131.29 | 110.02 |
Dolby Laboratories' cash conversion cycle has fluctuated over the past several quarters, indicating varying efficiency in managing its cash flow and working capital. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent quarter, December 2023, Dolby Laboratories had a cash conversion cycle of 177.80 days, which was higher compared to the previous quarter (September 2023) at 151.04 days. This suggests that the company took longer to convert its investments in inventory and other assets into cash in the December quarter.
Looking at the trend over the past several quarters, the cash conversion cycle has been volatile, with some periods showing improvements in efficiency (e.g., 19.69 days in June 2022) and others exhibiting longer cycles (e.g., 179.23 days in March 2020). This inconsistency may indicate challenges in managing inventory levels, collecting receivables, or negotiating payment terms with suppliers effectively.
Overall, Dolby Laboratories should focus on streamlining its supply chain processes, optimizing inventory turnover, and improving receivables collection to shorten its cash conversion cycle and enhance its working capital management efficiency.