Dropbox Inc (DBX)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,499,000	2,333,500	2,161,100	1,914,900	1,660,000
Total assets	US$ in thousands	2,983,500	3,110,100	3,091,300	2,387,200	2,699,200
Total asset turnover		0.84	0.75	0.70	0.80	0.61

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,499,000K ÷ $2,983,500K
= 0.84

Dropbox Inc's total asset turnover has fluctuated over the past five years. The ratio indicates how efficiently the company is utilizing its total assets to generate revenue. A higher total asset turnover is generally preferable as it suggests that the company is generating more revenue per dollar of assets.

In 2023, the total asset turnover ratio improved to 0.84, demonstrating that the company generated $0.84 in revenue for every dollar of total assets. This is an increase from the previous year, reflecting a more efficient utilization of assets to drive sales.

In 2022, the total asset turnover was 0.75, showing a slight decrease from the prior year. Despite the decline, the ratio still indicates reasonable efficiency in asset utilization for revenue generation.

In 2021, the total asset turnover was 0.70, which was lower than the preceding year. This suggests that Dropbox Inc may have experienced challenges in generating revenue relative to its total asset base during that period.

In 2020, the total asset turnover ratio improved to 0.80, indicating a more efficient use of assets to generate revenue compared to the previous year.

In 2019, the total asset turnover was 0.62, the lowest among the years analyzed. This may indicate that Dropbox Inc struggled to convert its total assets into revenue efficiently during that period.

Overall, while there have been fluctuations in Dropbox Inc's total asset turnover ratio over the years, the recent improvement in 2023 is a positive sign of enhanced asset utilization for revenue generation. Further analysis and monitoring of this ratio will provide insights into the company's operational efficiency and financial performance.