Dolby Laboratories (DLB)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 482,047 | 745,364 | 620,127 | 1,225,380 | 1,071,880 |
| Short-term investments | US$ in thousands | 0 | 139,148 | 189,213 | 38,839 | 46,948 |
| Receivables | US$ in thousands | 489,265 | 412,645 | 350,493 | 330,109 | 242,440 |
| Total current liabilities | US$ in thousands | 417,836 | 422,226 | 277,518 | 315,717 | 267,109 |
| Quick ratio | 2.32 | 3.07 | 4.18 | 5.05 | 5.10 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($482,047K
+ $0K
+ $489,265K)
÷ $417,836K
= 2.32
The quick ratio measures the ability of a company to meet its short-term obligations with its most liquid assets, excluding inventory. A higher quick ratio indicates a stronger liquidity position, as the company has a greater ability to cover its immediate liabilities.
Dolby Laboratories' quick ratio has shown a declining trend over the past five years, decreasing from 5.10 in 2020 to 2.32 in 2024. While the current quick ratio of 2.32 is lower compared to previous years, it still remains above the acceptable industry average of 1. A quick ratio of 2.32 means that Dolby Laboratories has $2.32 of liquid assets available to cover each dollar of current liabilities.
It is important to note that a quick ratio above 1 indicates that the company has sufficient liquid assets to cover its short-term obligations, but a quick ratio that is too high may suggest that the company is not efficiently deploying its assets. Therefore, while Dolby Laboratories' quick ratio has declined over the years, it is still at a healthy level to meet its short-term obligations.
Peer comparison
Sep 30, 2024