Dolby Laboratories (DLB)
Liquidity ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.86 | 4.14 | 3.50 | 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 |
| Quick ratio | 2.32 | 3.64 | 2.84 | 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 |
| Cash ratio | 1.15 | 2.45 | 1.86 | 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 |
Dolby Laboratories consistently maintains a healthy level of liquidity as reflected in its current ratio, which has remained above 3 in the recent quarters, indicating that the company has more than enough current assets to cover its current liabilities. This trend suggests that Dolby Laboratories is in a strong position to meet its short-term obligations.
The quick ratio, which excludes inventory from current assets, also demonstrates a solid liquidity position for Dolby Laboratories, consistently above 3. This indicates the company's ability to meet its short-term liabilities without relying on selling inventory.
Furthermore, the cash ratio, which only considers the most liquid assets, shows a similar positive trend, remaining above 2 in most periods. This suggests that Dolby Laboratories possesses a significant amount of cash to cover its current liabilities without the need to liquidate other assets.
Overall, Dolby Laboratories exhibits a strong liquidity position based on the current, quick, and cash ratios, indicating its ability to meet short-term financial obligations efficiently and effectively.
Additional liquidity measure
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 182.68 | 169.57 | 164.24 | 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 |
The cash conversion cycle of Dolby Laboratories has varied over the past several quarters, indicating fluctuations in its efficiency in managing its cash flow and working capital.
In the most recent quarter, as of September 30, 2024, the cash conversion cycle was 182.68 days, which suggests that on average, it takes Dolby Laboratories approximately 182.68 days to convert its investments in inventory into cash from sales. This reflects a lengthening of the cycle compared to the previous quarter, indicating potential challenges in managing inventory, accounts receivable, and accounts payable effectively.
Looking back further, the trend shows some variability in the cash conversion cycle, with some quarters exhibiting shorter cycles (e.g., March 31, 2022, at 14.68 days) and others longer cycles (e.g., December 31, 2023, at 177.80 days). This inconsistency may indicate fluctuations in sales levels, inventory management practices, and collection periods.
Overall, Dolby Laboratories should focus on optimizing its working capital and cash flow management processes to reduce the cash conversion cycle. Strategies to improve efficiency could include streamlining inventory management, speeding up accounts receivable collections, and negotiating favorable payment terms with suppliers to reduce the time it takes to convert investments into cash.