Box Inc (BOX)

Quick ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cash	US$ in thousands	624,575	383,742	428,465	416,274	595,082
Short-term investments	US$ in thousands	98,241	96,948	32,783	170,000	0
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	922,076	679,280	715,827	718,975	612,839
Quick ratio		0.78	0.71	0.64	0.82	0.97

January 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($624,575K + $98,241K + $—K) ÷ $922,076K
= 0.78

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. Box Inc's quick ratio has shown a decreasing trend over the past five years. As of January 31, 2021, the quick ratio was 0.97, indicating that the company had almost enough liquid assets to cover its current liabilities. However, by January 31, 2025, the quick ratio had decreased to 0.78, suggesting a decline in the company's ability to meet its short-term obligations with its readily available assets. While the quick ratio fluctuated slightly over the years, it is important for Box Inc to closely monitor and manage its liquidity position to ensure it can meet its financial obligations efficiently.