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Dolby Laboratories ROE %

: 6.27% (As of Jun. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Dolby Laboratories's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $158 Mil. Dolby Laboratories's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $2,527 Mil. Therefore, Dolby Laboratories's annualized ROE % for the quarter that ended in Jun. 2022 was 6.27%.

The historical rank and industry rank for Dolby Laboratories's ROE % or its related term are showing as below:

DLB' s ROE % Range Over the Past 10 Years
Min: 1.86   Med: 10.62   Max: 15.62
Current: 7.77

During the past 13 years, Dolby Laboratories's highest ROE % was 15.62%. The lowest was 1.86%. And the median was 10.62%.

DLB's ROE % is ranked better than
60% of 2565 companies
in the Software industry
Industry Median: 3.05 vs DLB: 7.77

Dolby Laboratories ROE % Historical Data

The historical data trend for Dolby Laboratories's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dolby Laboratories Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.06 1.86 10.92 9.76 12.33

Dolby Laboratories Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.39 6.77 12.23 5.61 6.27

Competitive Comparison

For the Information Technology Services subindustry, Dolby Laboratories's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Dolby Laboratories ROE % Distribution

For the Software industry and Technology sector, Dolby Laboratories's ROE % distribution charts can be found below:

* The bar in red indicates where Dolby Laboratories's ROE % falls into.



Dolby Laboratories ROE % Calculation

Dolby Laboratories's annualized ROE % for the fiscal year that ended in Sep. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Sep. 2021 )/( (Total Stockholders Equity (A: Sep. 2020 )+Total Stockholders Equity (A: Sep. 2021 ))/ count )
=310.227/( (2432.643+2597.979)/ 2 )
=310.227/2515.311
=12.33 %

Dolby Laboratories's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Jun. 2022 ))/ count )
=158.388/( (2599.772+2454.361)/ 2 )
=158.388/2527.0665
=6.27 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Dolby Laboratories  (NYSE:DLB) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=158.388/2527.0665
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(158.388 / 1158.34)*(1158.34 / 2991.463)*(2991.463 / 2527.0665)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.67 %*0.3872*1.1838
=ROA %*Equity Multiplier
=5.29 %*1.1838
=6.27 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=158.388/2527.0665
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (158.388 / 197.648) * (197.648 / 186.168) * (186.168 / 1158.34) * (1158.34 / 2991.463) * (2991.463 / 2527.0665)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8014 * 1.0617 * 16.07 % * 0.3872 * 1.1838
=6.27 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Dolby Laboratories ROE % Related Terms

Thank you for viewing the detailed overview of Dolby Laboratories's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Dolby Laboratories Business Description

Dolby Laboratories logo
Traded in Other Exchanges
Address
1275 Market Street, San Francisco, CA, USA, 94103-1410
Dolby Laboratories Inc develops audio and surround sound for cinema, broadcast, home audio systems, in-car entertainment systems, DVD players, games, televisions, and personal computers. The company generates three fourths of its revenue from licensing its technology to consumer electronics manufacturers around the world. The rest of revenue comes from equipment sales to professional producers and audio engineering services.
Executives
Revankar Shriram officer: SVP, Advanced Technology Group C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Prophet Tony A director 9 BERNICE STREET SAN FRANCISCO CA 94103
Couling John D officer: SVP, Entertainment C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Park Robert J officer: SVP & Chief Financial Officer C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Rollins Emily director C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Dagmar Dolby 2019 Trust Bb,dated July 22, 2019 10 percent owner 2515 SCOTT STREET SAN FRANCISCO CA 94115
Sud Anjali director C/O VIMEO INC. 555 WEST 18TH STREET NEW YORK NY 10011
Dagmar Dolby 2018 Trust Bb, Dated June 20, 2018 10 percent owner 2515 SCOTT STREET SAN FRANCISCO CA 94115
Nicholson Ryan officer: VP, Corporate Controller C/O DOLBY LABORATORIES INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Pendleton Todd officer: SVP, Chief Marketing Officer 1275 MARKET STREET SAN FRANCISCO CA 94103
Baker Giles officer: SVP, Consumer Entertainment 1275 MARKET STREET SAN FRANCISCO CA 94103
Dagmar Dolby 2016 Trust Bb, Dated March 23, 2016 10 percent owner 2515 SCOTT STREET SAN FRANCISCO CA 94115
Segars Simon director C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Marital Trust Under Dolby Family Trust Dated May 7, 1999 10 percent owner 2515 SCOTT STREET SAN FRANCISCO CA 94115
Dagmar Dolby Trust Under Dolby Family Trust Instrument Dated May 7, 1999 10 percent owner 2515 SCOTT STREET SAN FRANCISCO CA 94115

Dolby Laboratories Headlines

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