Dropbox Inc (DBX)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,501,200	2,468,800	2,433,900	2,382,200	2,335,500	2,303,700	2,255,600	2,216,900	2,163,200	2,076,300	2,014,200	1,949,500	1,922,000	1,858,000	1,793,900	1,723,900	1,622,000	1,587,000	1,520,200	1,459,100
Property, plant and equipment	US$ in thousands	309,200	298,900	298,500	307,200	308,400	281,100	296,300	316,100	322,000	345,800	342,900	330,800	338,700	488,400	475,600	473,200	445,300	416,600	369,300	340,900
Fixed asset turnover		8.09	8.26	8.15	7.75	7.57	8.20	7.61	7.01	6.72	6.00	5.87	5.89	5.67	3.80	3.77	3.64	3.64	3.81	4.12	4.28

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,501,200K ÷ $309,200K
= 8.09

The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is more efficient in utilizing its fixed assets to generate revenue.

For Dropbox Inc, the fixed asset turnover has shown fluctuations over the past eight quarters, ranging from 6.99 to 8.25. The trend has been relatively stable, with the ratio generally staying above 7, indicating that Dropbox is effectively using its fixed assets to generate sales.

The highest fixed asset turnover ratio of 8.25 was recorded in Q3 2023, suggesting that Dropbox was particularly efficient in utilizing its fixed assets to generate revenue during that period. Conversely, the lowest ratio of 6.99 was observed in Q1 2022, indicating relatively lower efficiency in asset utilization during that quarter.

Overall, the average fixed asset turnover ratio for Dropbox Inc over the period analyzed is approximately 7.92, indicating that the company has been able to effectively leverage its fixed assets to drive revenue generation. Investors and stakeholders may view this as a positive indicator of the company's operational efficiency and financial performance.