Dropbox Inc (DBX)

Number of days of payables

		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
Payables turnover		35.48	32.34	32.75	36.97	35.83	36.63	41.50	50.22	48.65	43.82	31.52	36.22	51.46	37.85	43.14	29.89	28.73	53.94	46.62	46.53
Number of days of payables	days	10.29	11.29	11.14	9.87	10.19	9.96	8.79	7.27	7.50	8.33	11.58	10.08	7.09	9.64	8.46	12.21	12.70	6.77	7.83	7.85

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 35.48
= 10.29

Dropbox Inc's number of days of payables has shown some fluctuations over the past eight quarters. The trend indicates that the company took longer to pay its payables in Q3 and Q2 of 2023 compared to the previous quarters, with 34.93 days and 34.97 days, respectively. This suggests a potential delay in settling its obligations to suppliers during those periods. However, the number of days decreased in Q4 2023 to 29.37 days, indicating an improvement in the payables management efficiency compared to the two preceding quarters.

It is noteworthy that the number of days of payables has generally increased since Q1 2022, where it was at 19.89 days. This upward trend could indicate a change in the company's payment terms with vendors or a strategic shift in managing working capital.

Overall, a higher number of days of payables may imply that Dropbox Inc is stretching its payment terms and holding onto cash longer, potentially benefiting from improved cash flow management. However, it is essential for the company to maintain a balance in managing payables to maintain good supplier relationships and avoid potential liquidity issues in the future.