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Dolby Laboratories Interest Coverage

: 554.07 (As of Jun. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Dolby Laboratories's Operating Income for the three months ended in Jun. 2022 was $47 Mil. Dolby Laboratories's Interest Expense for the three months ended in Jun. 2022 was $-0 Mil. Dolby Laboratories's interest coverage for the quarter that ended in Jun. 2022 was 554.07. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Dolby Laboratories Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

DLB' s Interest Coverage Range Over the Past 10 Years
Min: 436.76   Med: 1456.54   Max: No Debt
Current: 602.25


DLB's Interest Coverage is ranked better than
79.91% of 1563 companies
in the Software industry
Industry Median: 33.29 vs DLB: 602.25

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Dolby Laboratories Interest Coverage Historical Data

The historical data trend for Dolby Laboratories's Interest Coverage 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
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,047.16 924.54 1,727.26 1,185.82 711.40

Dolby Laboratories Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 520.66 333.62 1,077.21 557.61 554.07

Competitive Comparison

For the Information Technology Services subindustry, Dolby Laboratories's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where Dolby Laboratories's Interest Coverage falls into.



Dolby Laboratories Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Dolby Laboratories's Interest Coverage for the fiscal year that ended in Sep. 2021 is calculated as

Here, for the fiscal year that ended in Sep. 2021, Dolby Laboratories's Interest Expense was $-0 Mil. Its Operating Income was $341 Mil. And its Long-Term Debt & Capital Lease Obligation was $57 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2021 )/Interest Expense (A: Sep. 2021 )
=-1*340.759/-0.479
=711.40

Dolby Laboratories's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Dolby Laboratories's Interest Expense was $-0 Mil. Its Operating Income was $47 Mil. And its Long-Term Debt & Capital Lease Obligation was $44 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*46.542/-0.084
=554.07

* 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 higher the ratio, the stronger the company's Financial Strength is.


Dolby Laboratories  (NYSE:DLB) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Dolby Laboratories Interest Coverage Related Terms

Thank you for viewing the detailed overview of Dolby Laboratories's Interest Coverage 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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