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Dolby Laboratories Altman Z-Score

: 14.27 (As of Today)
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Good Sign:

Altman Z-score of 14.27 is strong.

Dolby Laboratories has a Altman Z-Score of 14.27, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

NYSE:DLB' s Altman Z-Score Range Over the Past 10 Years
Min: 2.74   Med: 12.18   Max: 26.73
Current: 14.27

2.74
26.73

During the past 13 years, Dolby Laboratories's highest Altman Z-Score was 26.73. The lowest was 2.74. And the median was 12.18.


Dolby Laboratories Altman Z-Score Historical Data

* 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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.21 11.35 10.99 10.02 10.70

Dolby Laboratories Quarterly Data
Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
Altman Z-Score 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 8.01 10.91 10.70 13.75 14.19

Competitive Comparison
* 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.
   

Dolby Laboratories Altman Z-Score Distribution

* The bar in red indicates where Dolby Laboratories's Altman Z-Score falls into.



Dolby Laboratories Altman Z-Score Calculation

Altman 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.

Dolby Laboratories's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.4643+1.4*0.8344+3.3*0.1053+0.6*19.6775+1.0*0.3952
=14.27

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2021:
Total Assets was $3,106 Mil.
Total Current Assets was $1,751 Mil.
Total Current Liabilities was $309 Mil.
Retained Earnings was $2,592 Mil.
Pre-Tax Income was 85.367 + 166.962 + 34.492 + 39.99 = $327 Mil.
Interest Expense was -0.167 + -0.085 + -0.055 + -0.034 = $-0 Mil.
Revenue was 319.558 + 389.874 + 271.191 + 246.909 = $1,228 Mil.
Market Cap (Today) was $10,076 Mil.
Total Liabilities was $512 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1751.148 - 308.977)/3106.29
=0.4643

X2=Retained Earnings/Total Assets
=2591.87/3106.29
=0.8344

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(326.811 - -0.341)/3106.29
=0.1053

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=10076.282/512.07
=19.6775

X5=Revenue/Total Assets
=1227.532/3106.29
=0.3952

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Dolby Laboratories has a Altman Z-Score of 14.27 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Dolby Laboratories  (NYSE:DLB) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Dolby Laboratories Altman Z-Score Related Terms


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