Dolby Laboratories (DLB)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 161 | 394 | 479 | 186 | 170 |
| Interest coverage | 1,340.08 | 547.87 | 725.25 | 1,288.41 | 1,659.55 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $215,753K ÷ $161K
= 1,340.08
The interest coverage ratio for Dolby Laboratories has displayed significant fluctuations over the past five years, indicating varying levels of ability to cover interest expenses with operating income. In particular, the ratio soared to 1,340.08 in September 2023 from 547.87 in September 2022, reflecting a substantial improvement in the company's capacity to meet interest obligations. This surge suggests a robust ability to service debt through operational earnings. However, it is noteworthy that the ratio has been volatile over this period, reaching its lowest point at 547.87 in September 2022. Despite the fluctuations, Dolby Laboratories generally maintained a healthy interest coverage ratio above 1, which implies that the company has consistently generated sufficient operating income to cover interest expenses. Overall, the recent spike in the interest coverage ratio indicates a strengthened financial position in terms of the company's ability to manage debt obligations.
Peer comparison
Sep 30, 2023