Dolby Laboratories (DLB)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 215,753 | 215,862 | 347,395 | 239,645 | 282,123 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,355,100 | 2,246,180 | 2,597,980 | 2,432,640 | 2,307,350 |
| Return on total capital | 9.16% | 9.61% | 13.37% | 9.85% | 12.23% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $215,753K ÷ ($—K + $2,355,100K)
= 9.16%
Dolby Laboratories has demonstrated a consistent return on total capital over the past five years, albeit with slight fluctuations. The return on total capital decreased from 13.37% in 2021 to 9.16% in 2023. This decline may indicate a potential decrease in the efficiency of utilizing both debt and equity capital to generate profits. It is important for the company to monitor and improve its capital allocation strategies to enhance overall returns for its stakeholders.
Peer comparison
Sep 30, 2023
Company name
Symbol
Return on total capital
Dolby Laboratories
DLB
9.16%
InterDigital Inc
IDCC
46.26%
Marathon Digital Holdings Inc
MARA
14.83%