Dynamic range is the loudest possible sound and noise floor is the quietest.
We already know that a quiet room has a background noise level of about 30db that we need to rise above. Even if the system is playing above the 30db room noise, the power supply in a DAC will mask the LSB if the peak-to-peak voltage of the noise in the power supply is not less than the voltage of the LSB.
In order for a DAC to actually resolve a specific bit depth the peak-to-peak voltage of the ripple in the power supply has to be lower than the voltage of the LSB. And in order for a DAC to resolve a specific sampling rate the speed of the power supply has to be faster than the sampling frequency.
Based on a 2.5V output of a single-ended DAC (about average), below are the voltages power supply noise must be below in order to hear the LSB:
- 16-bit LSB noise floor voltage = 76uV
- 20-bit LSB noise floor voltage = 4.75uV
- 24-bit LSB noise floor voltage = 0.3uV
For a reference, the common LM317 power regulator, the quality used in most commercial electronics, has about 150uV peak-to-peak noise and the best ultralow-noise power regulators used in the best-of-the-best of audiophile electronics have about 5uV of peak-to-peak noise. So even the 5V output of a balanced DAC could not resolve anything close to the LSB voltage of a 24-bit recording.
Sorry to burst anyone's bubble and contradict the marketing hype, myth, and legend in the audiophile industry, but just because a DAC is capable of decoding 24-bits doesn't mean it is capable of actually resolving that bit-depth in its analog output stage.
According to the experts who manufacture the finest DAC chips, resistors, and power regulators, there is theoretically no way to make electronics that are capable of discerning much greater than a 20-bit resolution (120dB dynamic range). Any company who claims 24-bit resolution from their DAC is simply full of ****. Oh they can decode 24-bits, because 24-bits does exist on the digital side, but the analog output stage in the world's best DACs are not capable of resolving much more than 20-bits of dynamic range.
And don't even get me started on DACs with tube output stages: the lowest noise floor of a tube output stage is about 90dB which means despite whatever a manufacturer may claim no tube DAC can even resolve the dynamic range in a 16-bit recording let alone a 24-bit recording.