Dropbox Inc (DBX)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		33.08	38.51	40.36	41.36	38.73	46.35	48.30	49.71	40.28	50.77	38.59	38.60	41.69	37.46	39.34	46.72	36.78	30.29	37.08	32.86
DSO	days	11.03	9.48	9.04	8.83	9.42	7.87	7.56	7.34	9.06	7.19	9.46	9.45	8.75	9.74	9.28	7.81	9.92	12.05	9.84	11.11

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 33.08
= 11.03

To analyze Dropbox Inc's days of sales outstanding (DSO) over the past eight quarters, we observe a consistent trend of decreasing DSO values from Q1 2022 to Q4 2023. This implies that the company has been collecting its accounts receivable more efficiently over time.

In Q4 2023, the DSO stood at 10.02 days, slightly higher compared to the previous quarter at 9.49 days. However, this slight increase does not indicate a significant concern as the overall trend has been positive. The company managed to collect its outstanding sales within an average of 10.02 days during the fourth quarter of 2023.

The decreasing trend in DSO from Q1 2022 to Q4 2023 suggests that Dropbox Inc has been improving its credit and collection policies, resulting in better cash flow management. A lower DSO indicates that the company is efficient in collecting payments from customers, which can positively impact liquidity and working capital.

Overall, the downward trend in DSO for Dropbox Inc reflects positively on its financial health and management of accounts receivable, showcasing improved efficiency in the collection of sales revenues over the past eight quarters.