Dolby Laboratories (DLB)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,979,770 | 2,689,550 | 3,105,690 | 2,917,320 | 2,821,750 |
| Total stockholders’ equity | US$ in thousands | 2,355,100 | 2,246,180 | 2,597,980 | 2,432,640 | 2,307,350 |
| Financial leverage ratio | 1.27 | 1.20 | 1.20 | 1.20 | 1.22 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,979,770K ÷ $2,355,100K
= 1.27
Dolby Laboratories' financial leverage ratio has been relatively stable over the past five years, hovering around 1.20 to 1.27. This indicates that the company relies more on debt financing rather than equity to fund its operations and investments. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure. While a higher leverage ratio can magnify returns during good economic conditions, it also exposes the company to greater financial risk during economic downturns. Dolby Laboratories may be managing its debt levels effectively to maintain a balance between risk and return in its capital structure.
Peer comparison
Sep 30, 2023