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Dolby Laboratories Operating Margin %

: 19.61% (As of Jun. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Dolby Laboratories's Operating Income for the three months ended in Jun. 2021 was $56 Mil. Dolby Laboratories's Revenue for the three months ended in Jun. 2021 was $287 Mil. Therefore, Dolby Laboratories's Operating Margin % for the quarter that ended in Jun. 2021 was 19.61%.

Warning Sign:

Dolby Laboratories Inc operating margin has been in 5-year decline. The average rate of decline per year is -2.6%.

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

NYSE:DLB' s Operating Margin % Range Over the Past 10 Years
Min: 17.36   Med: 23.86   Max: 45.07
Current: 26.12

17.36
45.07

NYSE:DLB's Operating Margin % is ranked higher than
93% of the 2424 Companies
in the Software industry.

( Industry Median: 4.30 vs. NYSE:DLB: 26.12 )

Dolby Laboratories's 5-Year Average Operating Margin % Growth Rate was -2.60% per year.

Dolby Laboratories's Operating Income for the three months ended in Jun. 2021 was $56 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2021 was $331 Mil.


Dolby Laboratories Operating Margin % Historical Data

The historical data trend for Dolby Laboratories's Operating Margin % 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 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.72 24.07 17.36 23.65 18.98

Dolby Laboratories Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Operating Margin % 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 14.44 11.07 41.27 26.26 19.61

Competitive Comparison

For the Information Technology Services industry, Dolby Laboratories's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % Distribution

For the Information Technology Services industry and Technology sector, Dolby Laboratories's Operating Margin % distribution charts can be found below:

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



Dolby Laboratories Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Dolby Laboratories's Operating Margin % for the fiscal year that ended in Sep. 2020 is calculated as

Operating Margin %=Operating Income (A: Sep. 2020 ) / Revenue (A: Sep. 2020 )
=220.563 / 1161.792
=18.98 %

Dolby Laboratories's Operating Margin % for the quarter that ended in Jun. 2021 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=56.231 / 286.799
=19.61 %

* 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.


Dolby Laboratories  (NYSE:DLB) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Dolby Laboratories Operating Margin % Related Terms

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


Dolby Laboratories Business Description

Dolby Laboratories logo
Industry
Technology » Software NAICS : 541511 SIC : 7371
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
Forshay Steven E officer: SVP, Advanced Technology Group 1275 MARKET STREET SAN FRANCISCO CA 94103
Dolby Dagmar 10 percent owner C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Dagmar Dolby Trust Under Dolby Family Trust Instrument Dated May 7, 1999 10 percent owner 2515 SCOTT STREET SAN FRANCISCO CA 94115
Baker Giles officer: SVP, Consumer Entertainment 1275 MARKET STREET SAN FRANCISCO CA 94103
Nicholson Ryan officer: VP, Corporate Controller C/O DOLBY LABORATORIES INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Chew Lewis officer: EVP & Chief Financial Officer DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Yeaman Kevin J director, officer: President and CEO 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
Sherman Mark Andrew officer: EVP, GEN. COUN. & SECRTY DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Tevanian Avadis director APPLE COMPUTER INC 1 INFINITE LOOP CUPERTINO CA 95014
Sud Anjali director C/O DOLBY LABORATORIES INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Segars Simon director C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Dolby David director, 10 percent owner C/O DOLBY LABORATORIES, INC. 100 POTRERO AVENUE SAN FRANCISCO CA 94103
Jasper N William Jr director C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Gotcher Peter C director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: GOTCHER PETER C a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}

Dolby Laboratories Headlines

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