Dropbox Inc (DBX)

Payables 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
Cost of revenue (ttm)	US$ in thousands	1,366,000	1,461,700	1,450,900	1,427,000	1,383,100	1,260,200	1,257,600	1,225,400	1,250,300	1,007,800	995,900	1,003,400	962,300	1,116,500	1,134,600	1,159,600	1,169,400	1,688,200	1,482,600	1,274,800
Payables	US$ in thousands	38,500	45,200	44,300	38,600	38,600	34,400	30,300	24,400	25,700	23,000	31,600	27,700	18,700	29,500	26,300	38,800	40,700	31,300	31,800	27,400
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

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,366,000K ÷ $38,500K
= 35.48

The payables turnover ratio measures how efficiently a company manages its payments to suppliers by indicating how many times a company pays off its accounts payable during a specific period. A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently.

Analyzing Dropbox Inc's payables turnover based on the data provided, we observe fluctuations in the ratio over the past eight quarters. In Q4 2022, the payables turnover ratio was 11.51 and increased steadily to reach 12.43 in Q4 2023. This indicates an improvement in the company's efficiency in managing its payments to suppliers during this period.

On average, Dropbox Inc has maintained a relatively stable payables turnover ratio above 10 over the past eight quarters. This suggests that the company, in general, is efficiently managing its accounts payable by paying off suppliers multiple times within each reporting period.

Additionally, the peak payables turnover ratio of 18.35 in Q1 2022 may indicate a specific event or strategy adopted by Dropbox Inc during that period to expedite payments to suppliers.

Overall, the trend in Dropbox Inc's payables turnover ratio shows consistent management of accounts payable, with occasional fluctuations reflecting changing dynamics in the company's supplier payment strategies.