Dolby Laboratories (DLB)
Solvency ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.25 | 1.27 | 1.27 | 1.21 | 1.20 | 1.20 | 1.19 | 1.18 | 1.18 | 1.20 | 1.20 | 1.20 | 1.21 | 1.20 | 1.19 | 1.25 | 1.24 | 1.22 | 1.21 | 1.21 |
Dolby Laboratories has consistently maintained a low level of debt relative to its assets, capital, and equity, as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across all periods. This suggests that the company operates with minimal financial leverage and relies more on equity financing than debt.
However, the financial leverage ratio has been fluctuating slightly over the periods, ranging from 1.18 to 1.27. This ratio measures the extent to which a company is using debt to finance its operations. A higher financial leverage ratio indicates a higher level of debt in the company's capital structure. Despite the fluctuations, the financial leverage ratio has generally stayed within a manageable range, with the highest being 1.27.
Overall, Dolby Laboratories appears to have a conservative approach to its capital structure, with a focus on maintaining a strong financial position by keeping debt levels low relative to its assets and equity.
Coverage ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 1,659.52 | 1,592.14 | 928.58 |
Dolby Laboratories demonstrated a varying trend in its interest coverage ratio over the past five years. The interest coverage ratio measures a company's ability to pay its interest obligations from its operating earnings.
From the data provided, we observe fluctuations in Dolby Laboratories' interest coverage ratio. In the most recent period ending December 31, 2023, the interest coverage ratio was notably high at 2,546.25, indicating a strong ability to cover interest expenses with operating earnings. This represents a substantial improvement compared to the previous quarter, where the ratio stood at 1,474.75.
Looking back over the last five years, the interest coverage ratio has shown volatility, with peaks and troughs suggesting fluctuations in the company's operating performance relative to its interest obligations. For example, at the end of 2020 and the beginning of 2021, the interest coverage ratio was particularly strong, exceeding 1,700. This indicates a robust ability to meet interest payments during that period.
On the other hand, there have been periods, such as in mid to late 2022, where the interest coverage ratio dropped to levels around 500-600, suggesting a tighter ability to cover interest expenses with operating earnings during those specific quarters.
Overall, it is important for stakeholders to monitor the interest coverage ratio of Dolby Laboratories closely, as it provides insights into the company's financial health, specifically its ability to handle interest payments. The recent improvement in the interest coverage ratio to exceptionally high levels is positive, but historical fluctuations highlight the need for continued scrutiny of the company's financial performance.