Dolby Laboratories
DLB Industrials Specialty Business Services
Dolby Laboratories' revenue for fiscal 2025 (year ended September 2025) was $1.3 billion, up 5.92% from fiscal 2024. In the quarter to June 2026, revenue fell 3.34%, EPS fell 37.5% and free cash flow grew 157.4%, each against the same quarter a year earlier. Dividend growth for ten consecutive years.
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Dolby Laboratories (DLB) Altman Z-score
Dolby Laboratories's Altman Z-score for fiscal 2025 is 9.17, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 9.17 | 0.02 |
| FY2024 | 9.15 | (0.58) |
| FY2023 | 9.72 | (1.57) |
| FY2022 | 11.29 | (1.88) |
| FY2021 | 13.17 | 2.47 |
| FY2020 | 10.70 | 0.59 |
| FY2019 | 10.10 | (0.89) |
| FY2018 | 10.99 | (0.29) |
| FY2017 | 11.28 | (0.86) |
| FY2016 | 12.13 | 3.51 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.29 | — | 0.35 | |
| Retained earnings / total assets | 0.82 | — | 1.14 | |
| EBIT / total assets | 0.08 | — | 0.27 | |
| Market value of equity / total liabilities | 11.64 | — | 6.99 | |
| Sales / total assets | 0.42 | — | 0.42 | |
| Altman Z-score | Safe zone | 9.17 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 9.78 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| DLB Dolby Laboratories | 9.2× |
| UNF Unifirst Corporation compare | 5.7× |
| AZZ AZZ Inc. compare | 4.6× |
| MMS Maximus, Inc. compare | 3.6× |
| ABM ABM Industries Incorporated compare | 2.8× |
| RTO Rentokil Initial PLC compare | 2.3× |
| AMTM Amentum Holdings, Inc. compare | 1.9× |
| CBZ CBIZ, Inc. compare | 1.9× |
| FA First Advantage Corporation compare | 1.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets