Dolby Laboratories (DLB)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 258,326 | 208,478 | 195,608 | 203,700 | 237,435 | 272,005 | 297,573 | 224,252 | 215,794 | 227,817 | 237,665 | 279,332 | 347,417 | 338,718 | 319,320 | 344,535 | 239,640 | 261,524 | 263,396 | 262,647 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,477,160 | 2,432,850 | 2,420,900 | 2,345,850 | 2,355,100 | 2,366,240 | 2,350,780 | 2,287,580 | 2,246,180 | 2,454,360 | 2,599,770 | 2,637,750 | 2,597,980 | 2,621,520 | 2,587,930 | 2,565,160 | 2,432,640 | 2,431,370 | 2,364,060 | 2,333,290 |
| Return on total capital | 10.43% | 8.57% | 8.08% | 8.68% | 10.08% | 11.50% | 12.66% | 9.80% | 9.61% | 9.28% | 9.14% | 10.59% | 13.37% | 12.92% | 12.34% | 13.43% | 9.85% | 10.76% | 11.14% | 11.26% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $258,326K ÷ ($—K + $2,477,160K)
= 10.43%
The return on total capital for Dolby Laboratories has shown fluctuations over the past few quarters. The ratios have ranged from 8.08% to 13.43% in the period from December 2019 to September 2024.
The return on total capital was relatively stable around the 10% mark for the quarters ending in September 2023 to March 2024, with a slight increase to 12.66% in March 2023. However, it dipped to 8.08% in March 2024 before showing a recovery in the subsequent quarters.
Overall, the return on total capital indicates the company's efficiency in generating earnings from its total capital base. Fluctuations in this ratio could be attributed to changes in profitability, capital structure, or increased investment activity. It is essential for stakeholders to monitor these trends to understand the company's financial performance and sustainability.
Peer comparison
Sep 30, 2024