Box Inc (BOX)

Current ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Total current assets	US$ in thousands	842,180	806,763	916,564	879,286	457,726
Total current liabilities	US$ in thousands	679,280	715,827	718,975	612,839	577,434
Current ratio		1.24	1.13	1.27	1.43	0.79

January 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $842,180K ÷ $679,280K
= 1.24

The current ratio of Box Inc has fluctuated over the past five years. In 2024, the current ratio stood at 1.24, indicating that the company had $1.24 in current assets for every $1 in current liabilities. This represents an improvement from the previous year, where the ratio was 1.13.

Comparing the current ratio to 2022 and 2021, Box Inc's liquidity position seems relatively stable, with ratios of 1.27 and 1.43, respectively. A current ratio above 1 suggests that the company has more than enough current assets to cover its current liabilities, reflecting a healthy liquidity position.

However, it's worth noting that in 2020, the current ratio dropped significantly to 0.79, indicating a potential liquidity issue or difficulty in meeting short-term obligations. This could be a cause for concern and may require further investigation into the company's financial health and operational efficiency during that period.

Overall, while Box Inc's current ratio has shown some variability in recent years, the upward trend from 2020 to 2024 is a positive sign of improved liquidity and ability to meet short-term obligations.