Dolby Laboratories (DLB)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 88.26% | 88.73% | 89.85% | 87.39% | 87.05% |
| Operating profit margin | 16.60% | 16.48% | 26.88% | 18.83% | 20.70% |
| Pretax margin | 19.16% | 17.19% | 27.08% | 20.61% | 22.71% |
| Net profit margin | 15.44% | 14.68% | 24.21% | 19.91% | 20.55% |
Dolby Laboratories has demonstrated consistent and competitive gross profit margins over the past five years, ranging from 87.05% to 89.85%. This indicates the company's ability to efficiently generate profits from its core operations.
The operating profit margin has also been relatively stable, with a slight fluctuation between 16.48% and 26.88%. This metric reflects Dolby's efficiency in managing its operating expenses while generating profits.
The pretax margin, a measure of a company's profitability before accounting for taxes, has shown some variability over the years, ranging from 17.19% to 27.08%. This indicates that Dolby's pre-tax profitability has seen fluctuations due to various factors impacting the company's earnings.
The net profit margin, representing the percentage of revenue that translates into net income, has been relatively consistent for Dolby Laboratories, ranging from 14.68% to 24.21%. This shows the company's ability to convert its revenue into profit after accounting for all expenses and taxes.
Overall, Dolby Laboratories has maintained solid profitability levels over the years, with a strong focus on generating profits from its operations while effectively managing expenses. However, slight fluctuations in profitability margins may require further analysis to understand the underlying factors affecting the company's financial performance.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.24% | 7.68% | 11.09% | 7.50% | 9.11% |
| Return on assets (ROA) | 6.73% | 6.84% | 9.99% | 7.93% | 9.04% |
| Return on total capital | 9.16% | 9.61% | 13.37% | 9.85% | 12.23% |
| Return on equity (ROE) | 8.52% | 8.20% | 11.94% | 9.51% | 11.06% |
Based on the profitability ratios of Dolby Laboratories over the past five years, we can observe the following trends:
1. Operating Return on Assets (Operating ROA): The Operating ROA has shown a slight decline from 11.09% in 2021 to 7.24% in 2023. This indicates that Dolby Laboratories is generating less operating income per dollar of assets invested in the business.
2. Return on Assets (ROA): The ROA has also experienced a decrease from 9.99% in 2021 to 6.73% in 2023. This suggests that Dolby Laboratories is becoming less efficient in generating overall profits from its total assets.
3. Return on Total Capital: The Return on Total Capital has followed a similar downward trajectory, declining from 13.37% in 2021 to 9.16% in 2023. This indicates that the company's ability to generate returns from both debt and equity capital has weakened over the period.
4. Return on Equity (ROE): The ROE has shown a fluctuating pattern, with slight variations year over year. In 2023, the ROE stands at 8.52%, which is lower compared to the previous years. This suggests that Dolby Laboratories is generating less profit for its shareholders per dollar of equity invested.
Overall, the profitability ratios indicate a decreasing trend in the company's ability to generate returns on assets, capital, and equity. This trend may raise concerns regarding the efficiency and profitability of Dolby Laboratories operations in recent years.