Is Dolby Laboratories, Inc. (DLB) Halal?

NYSE Industrials United States $5.5B
✓ HALAL
Confidence: 95/100
Dolby Laboratories, Inc. (DLB) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.6% against the AAOIFI threshold of 30%, Dolby Laboratories, Inc. comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Specialty Business Services), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from September 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.6%
/ 30%
11.3%
/ 30%
8.2%
/ 30%
0.6%
/ 5%
✓ HALAL
DJIM 0.6%
/ 33%
11.3%
/ 33%
8.2%
/ 33%
0.6%
/ 5%
✓ HALAL
MSCI 1.2%
/ 33%
21.8%
/ 33%
15.9%
/ 33%
0.6%
/ 5%
✓ HALAL
S&P 0.6%
/ 33%
11.3%
/ 33%
8.2%
/ 33%
0.6%
/ 5%
✓ HALAL
FTSE 1.2%
/ 33%
21.8%
/ 33%
15.9%
/ 50%
0.6%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
23.5
Forward: 12.5
EPS
$2.47
Dividend Yield
238.0%
Payout: 54.7%
P/B Ratio
2.1
EV/EBITDA
13.9
EV: $4.9B
Revenue
$1.3B
Growth: -2.9%
Beta
0.8
Average volatility
Current Ratio
3.2

Profitability

Gross Margin 87.9%
Operating Margin 20.9%
Net Margin 18.0%
Return on Equity (ROE) 9.5%
Return on Assets (ROA) 5.3%

Cash Flow & Balance Sheet

Operating Cash Flow$472M
Free Cash Flow$430M
Total Debt$39M
Debt-to-Equity1.6
Current Ratio3.2
Total Assets$3.2B

Price & Trading

Last Close$58.73
50-Day MA$63.27
200-Day MA$68.53
Avg Volume780K
Beta0.8
52-Week Range
$57.62
$81.63

About Dolby Laboratories, Inc. (DLB)

CEO
Mr. Kevin J. Yeaman
Employees
2,051
Sector
Industrials
Industry
Specialty Business Services
Country
United States
Exchange
NYSE
Market Cap
$5.5B
Currency
USD

Dolby Laboratories, Inc. engages in the design and manufacture of audio, imaging, accessibility, and other hardware and software solutions for television, broadcast, and live entertainment industries in the United States and internationally. The company develops and licenses its audio technologies, such as AAC, HE-AAC, and extended HE-AAC, a digital audio codec solution; AVC, a digital video codec used in STBs, mobile devices, cameras, and broadcast television services and other products; and Dolby Atmos and Dolby Vision include encoding technologies that artists use to create more compelling and immersive audio and video experiences. It also provides DD+, an advanced surround sound audio codec technology; Dolby AC-4, an audio codec that uses cutting edge compression; and HEVC, a digital video codec that compresses video. In addition, the company offers Dolby Cinemas, a premium large format cinemas that deliver a Dolby branded premium cinema offering with Dolby Vision, Dolby Atmos, and a Dolby theater design; Dolby.io, a SaaS product of immersive, interactive, and social experiences with real-time engagement for live events, especially sports; and digital cinema servers, cinema processors, amplifiers, loudspeakers, and audio and imaging hardware and software products for the cinema, television, broadcast, communication, and entertainment industries. Further, it provides various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment. It serves film studios, content creators, post-production facilities, and broadcasters. Dolby Laboratories, Inc. was founded in 1965 and is headquartered in San Francisco, California.

Purification Calculator

As a halal stock with 0.60% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Dolby Laboratories, Inc. (DLB) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Dolby Laboratories, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Dolby Laboratories, Inc.'s debt ratio?

Dolby Laboratories, Inc.'s debt ratio is 0.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 1.2%.

Does Dolby Laboratories, Inc. require dividend purification?

Yes, Dolby Laboratories, Inc. has an impermissible income ratio of 0.60%, which means 0.60% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Dolby Laboratories, Inc.'s key financial metrics?

Dolby Laboratories, Inc. has a market capitalization of $5.5B, trailing P/E ratio of 23.5, and revenue of $1.3B. The company maintains a gross margin of 87.9% and a net margin of 18.0%. Return on equity stands at 9.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.