Dolby Laboratories(Dlb) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios

Profitability Trend (Last 5 Years)

Profitability - return on equity

This chart shows the historical trend of return on equity for DLB compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', DLB's return on equity was 11.9%, measuring profitability for shareholders. Industry average for Multi-Sector Companies in '2021' stood at 5.9%.
• In '2022', DLB's return on equity was 7.6%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Multi-Sector Companies in '2022' stood at -13.4%. Industry average declined by 19.3% from previous year.
• In '2023', DLB's return on equity was 8.7%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Multi-Sector Companies in '2023' stood at 5.7%. Industry average increased by 19.0% compared to previous year.
• In '2024', DLB's return on equity was 10.8%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Multi-Sector Companies in '2024' stood at -19.5%. Industry average declined by 25.1% from previous year.
Overall, DLB's return on equity has been volatile but generally stable over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.