Dropbox Inc (DBX)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,365,900	1,379,400	1,250,300	1,586,700	1,191,100
Payables	US$ in thousands	38,500	38,600	25,700	18,700	40,700
Payables turnover		35.48	35.74	48.65	84.85	29.27

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,365,900K ÷ $38,500K
= 35.48

Dropbox Inc's payables turnover ratio has fluctuated over the past five years. The ratio indicates how many times the company pays off its suppliers during a specific period. A higher payables turnover ratio suggests that the company is managing its accounts payable efficiently by paying off its suppliers quickly.

In 2023, Dropbox's payables turnover ratio was 12.43, showing an improvement compared to the previous year. This implies that the company paid off its suppliers approximately 12.43 times during the year, indicating a more efficient management of accounts payable.

In 2022, the payables turnover ratio was 11.51, indicating a slightly lower efficiency in paying off suppliers compared to 2023 but still better than the ratios in the preceding years.

The ratio was significantly higher in 2021 at 17.28, suggesting that Dropbox was managing its accounts payable very efficiently by paying off suppliers more frequently. This high ratio could indicate strong supplier relationships or effective cash management.

In 2020, the payables turnover ratio was 22.17, which was even higher than in 2021, indicating an exceptional efficiency in paying off suppliers. This high ratio could potentially be a result of improved cash flow management or negotiating favorable payment terms with suppliers.

In contrast, in 2019, the payables turnover ratio was 10.10, indicating a lower frequency of paying off suppliers compared to the subsequent years. This might suggest a need for improved management of accounts payable and cash flow during that period.

Overall, Dropbox Inc's payables turnover ratio has shown variability over the past five years, with fluctuations reflecting changes in the company's efficiency in managing its accounts payable and relationship with suppliers.