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Dolby Laboratories Financial Strength

: 8 (As of Jun. 2021)
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Dolby Laboratories has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Dolby Laboratories Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Dolby Laboratories's Interest Coverage for the quarter that ended in Jun. 2021 was 520.66. Dolby Laboratories's debt to revenue ratio for the quarter that ended in Jun. 2021 was 0.07. As of today, Dolby Laboratories's Altman Z-Score is 14.01.


Competitive Comparison

For the Information Technology Services industry, Dolby Laboratories's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Dolby Laboratories's Financial Strength falls into.



Dolby Laboratories Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Dolby Laboratories's Interest Expense for the months ended in Jun. 2021 was $-0 Mil. Its Operating Income for the months ended in Jun. 2021 was $56 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $61 Mil.

Dolby Laboratories's Interest Coverage for the quarter that ended in Jun. 2021 is

Interest Coverage=-1*Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*56.231/-0.108
=520.66

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

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

2. Debt to revenue ratio. The lower, the better.

Dolby Laboratories's Debt to Revenue Ratio for the quarter that ended in Jun. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(15.642 + 60.967) / 1147.196
=0.07

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Dolby Laboratories has a Z-score of 14.01, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 14.01 is strong.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Dolby Laboratories has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Dolby Laboratories Financial Strength Related Terms

Thank you for viewing the detailed overview of Dolby Laboratories's Financial Strength 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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