Dolby Laboratories (DLB)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 0 | 0 | 114 | 80 | 161 | 300 | 270 | 391 | 394 | 374 | 398 | 478 | 479 | 415 | 341 | 199 | 186 | 195 | 190 | 197 |
| Interest coverage | — | — | 1,715.86 | 2,546.25 | 1,474.75 | 906.68 | 1,102.12 | 573.53 | 547.70 | 609.14 | 597.15 | 584.38 | 725.30 | 816.19 | 936.42 | 1,731.33 | 1,288.39 | 1,341.15 | 1,386.29 | 1,333.23 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $258,326K ÷ $0K
= —
Dolby Laboratories' interest coverage ratio has shown fluctuation in recent quarters, indicating varying levels of financial strength to meet interest payment obligations. The interest coverage ratio, which is a measure of a company's ability to pay its interest expenses on outstanding debt, was high in the March 2021 and September 2020 quarters, with values of 1,731.33 and 1,288.39 respectively. This demonstrates a strong ability to cover interest payments with operating income.
However, the interest coverage ratio declined in subsequent quarters, reaching its lowest point in the June 2023 quarter at 906.68. This decrease may suggest increased financial risk or a higher burden of debt servicing relative to operating income during that period.
In the most recent quarters, the interest coverage ratio has shown improvement, particularly in the March 2024 quarter where the ratio stood at 1,715.86, indicating a rebound in the company's ability to cover interest expenses.
Overall, fluctuations in Dolby Laboratories' interest coverage ratio suggest varying levels of financial health and risk over the analyzed periods. It would be important for stakeholders to monitor this ratio going forward to assess the company's ability to meet its debt obligations.
Peer comparison
Sep 30, 2024