Dolby Laboratories (DLB)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 258,326 | 215,753 | 215,862 | 347,395 | 239,645 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,477,160 | 2,355,100 | 2,246,180 | 2,597,980 | 2,432,640 |
| Return on total capital | 10.43% | 9.16% | 9.61% | 13.37% | 9.85% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $258,326K ÷ ($—K + $2,477,160K)
= 10.43%
Dolby Laboratories' return on total capital has shown variability over the past five years. In 2024, the return on total capital was 10.43%, representing an increase from the previous year's 9.16%. However, it was slightly lower than the 9.61% recorded in 2022. The highest return on total capital was observed in 2021 at 13.37%, indicating strong performance that year. In 2020, the return on total capital was 9.85%.
Overall, Dolby Laboratories has demonstrated relatively stable returns on total capital over the past five years, with fluctuations reflecting changes in the company's ability to generate earnings relative to its total capital investment. The upward trend in 2024 suggests improved efficiency in capital utilization compared to the prior year. It is important for the company to continue monitoring and optimizing its capital allocation strategies to sustain and potentially improve its return on total capital in the future.
Peer comparison
Sep 30, 2024