Dropbox Inc (DBX)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| 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 |
| Working capital turnover | 7.94 | 9.13 | 11.97 | 9.64 | 7.96 | 5.44 | 4.93 | 4.39 | 3.21 | 2.36 | 2.14 | 2.03 | 13.76 | 6.13 | 7.46 | 7.68 | 7.10 | 8.56 | 9.24 | 10.29 |
Inventory turnover ratio is not provided in the table, which indicates that there is no data available to calculate this ratio for Dropbox Inc.
Receivables turnover has been consistent over the quarters, showing a decreasing trend from 43.21 in Q4 2022 to 36.41 in Q3 2023. This implies that the company is collecting its receivables at a slightly slower pace.
Payables turnover has also been decreasing, from 11.51 in Q4 2022 to 10.45 in Q3 2023. A lower payables turnover may indicate that the company is taking longer to pay its suppliers.
Working capital turnover shows fluctuations, peaking at 11.92 in Q2 2023 and dropping to 7.94 in Q4 2023. This suggests that the company is generating revenue from its working capital at varying rates each quarter.
Overall, the activity ratios of Dropbox Inc indicate some variability in the management of its receivables, payables, and working capital, which may require further assessment to understand the underlying reasons for the fluctuations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (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 |
| 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 |
Days of inventory on hand (DOH) for Dropbox Inc is not provided in the table. Days of Sales Outstanding (DSO) have been improving over the last eight quarters, decreasing from 8.45 days in Q4 2022 to 10.02 days in Q4 2023, indicating that the company is collecting its accounts receivable more efficiently.
On the other hand, the Number of days of payables have been fluctuating over the same period, ranging from 19.89 days in Q1 2022 to 34.97 days in Q2 2023. This indicates that the company is taking longer to pay its suppliers compared to earlier periods.
Overall, the company needs to focus on managing its payables more effectively while continuing to improve its accounts receivable collection process to enhance its working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.84 | 0.82 | 0.83 | 0.80 | 0.75 | 0.85 | 0.82 | 0.78 | 0.70 | 0.62 | 0.61 | 0.59 | 0.81 | 0.65 | 0.65 | 0.63 | 0.60 | 0.64 | 0.64 | 0.69 |
The fixed asset turnover ratio for Dropbox Inc has been relatively stable over the past eight quarters, ranging from 6.99 to 8.25 times. This ratio indicates that the company generates between approximately 7 to 8 times in sales revenue for every dollar invested in fixed assets. A higher fixed asset turnover ratio is generally favorable as it reflects efficient utilization of fixed assets to generate revenue.
On the other hand, the total asset turnover ratio for Dropbox Inc has also shown consistency but at a lower level compared to the fixed asset turnover. The total asset turnover ratio has ranged from 0.75 to 0.85 over the same period. This ratio signifies that the company generates sales revenue of around 0.75 to 0.85 times for every dollar in total assets.
Comparing the two ratios, it is apparent that Dropbox Inc is more efficient in utilizing its fixed assets to generate sales revenue compared to its total assets. This suggests that the company may have significant investments in non-operating assets such as cash, investments, or receivables which are not generating revenue as efficiently as its fixed assets.
Overall, monitoring both fixed asset turnover and total asset turnover ratios can provide insights into the operational efficiency and asset utilization of Dropbox Inc, assisting investors and analysts in assessing the company's long-term performance and resource management.