showing the working

← Dolby Laboratories

The business behind the dividend

MeasureDLBMedianFormula
Return on equity9.7%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$306.50m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$435.85m$155.08mOperating cash flow − capital expenditure
Operating margin19.6%14.3%Operating income ÷ revenue
Net margin18.9%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-6.7%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, Interest cover, Return on capital employed — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity9.7%10.6%8.5%8.2%11.9%9.5%11.1%1.8%9.7%9.4%9.5%
Operating margin19.6%20.3%16.6%16.5%26.9%18.8%20.7%17.4%22.9%22.6%19.6%
Net margin18.9%20.6%15.4%14.7%24.2%19.9%20.5%4.0%19.1%18.1%18.9%

How it compares in banks & insurers

Among the 377 banks & insurers companies here measured on GAAP earnings, Dolby Laboratories pays out less than 71 of them. The median for that group is 30.6%, against this company’s 50.4%.

Closest on GAAP earnings

Same sector and same denominator, so the figures are comparable. All 377 in banks & insurers →