Dropbox Inc (DBX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 4.83 | 7.94 | 7.93 | 3.20 | 13.70 |
Based on the provided data for Dropbox Inc's activity ratios:
1. Inventory Turnover:
- The inventory turnover ratio is not available for any of the years provided. This means that we do not have information on how efficiently the company is managing its inventory in relation to its sales.
2. Receivables Turnover:
- The receivables turnover ratio is not provided for any of the years. Without this information, we are unable to assess how quickly the company is collecting payments from its customers.
3. Payables Turnover:
- The payables turnover ratio is not given for any of the years, making it difficult to evaluate how long it takes for the company to pay its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively the company is utilizing its working capital to generate revenue. The trend indicates a significant decrease from 13.70 in 2020 to 4.83 in 2024. A higher ratio generally indicates more efficient utilization of working capital.
Overall, due to the lack of data for inventory turnover, receivables turnover, and payables turnover, combined with the notable decrease in working capital turnover, a comprehensive analysis of Dropbox Inc's activity ratios is limited.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Dropbox Inc's activity ratios, namely Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, have been provided for the years ending December 31 from 2020 to 2024. Unfortunately, specific numerical values for these activity ratios are not available in the data provided.
Activity ratios are used to assess how efficiently a company is managing its assets and liabilities related to its operational activities.
DOH indicates the average number of days it takes for the company to sell its inventory. A lower DOH value is generally better as it suggests faster turnover of inventory.
DSO reflects the average number of days it takes for the company to collect its accounts receivable. A lower DSO is preferable as it signifies faster collection of payments from customers.
The Number of Days of Payables measures the average time the company takes to pay off its creditors or suppliers. A higher number of days of payables may suggest a favorable situation where the company is taking longer to pay its suppliers, thereby improving cash flow.
Without specific numerical values for these ratios, it is challenging to provide a detailed analysis of Dropbox Inc's efficiency in managing its inventory, receivables, and payables over the years. To better understand the company's performance in this regard, specific data points would be necessary for a more in-depth assessment.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.09 | 2.93 | 5.65 |
| Total asset turnover | 0.77 | 0.84 | 0.75 | 0.70 | 0.80 |
The Fixed Asset Turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets. Looking at Dropbox Inc's data over the years, we observe a decreasing trend from 5.65 in 2020 to 2.93 in 2021, then an increase to 4.09 in 2022. However, there is missing data for 2023 and 2024. The significant decrease in 2021 indicates that the company might not be utilizing its fixed assets efficiently to generate sales. The subsequent increase in 2022 suggests an improvement in this aspect.
Total Asset Turnover ratio reflects how efficiently a company utilizes its assets to generate sales. Dropbox Inc's data shows a fluctuating trend from 0.80 in 2020 to 0.70 in 2021, then an increase to 0.75 in 2022, followed by a further increase to 0.84 in 2023, and a slight decrease to 0.77 in 2024. A decreasing trend in the Total Asset Turnover ratio can indicate that the company is not effectively utilizing its total assets to generate sales, whereas an increasing trend suggests improved efficiency in asset utilization.
Overall, the analysis of Dropbox Inc's long-term activity ratios reveals fluctuations in both Fixed Asset Turnover and Total Asset Turnover ratios, indicating varying efficiency levels in generating sales revenue from fixed and total assets over the years. Further analysis in conjunction with other financial metrics would provide more insights into the company's operational efficiency and asset utilization strategies.