Dropbox Inc (DBX)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 2,548,200 2,501,600 2,324,900 2,157,900 1,913,900
Total current assets US$ in thousands 1,738,400 1,516,600 1,489,800 1,849,800 1,227,500
Total current liabilities US$ in thousands 1,210,800 1,201,500 1,196,500 1,175,800 1,087,800
Working capital turnover 4.83 7.94 7.93 3.20 13.70

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,548,200K ÷ ($1,738,400K – $1,210,800K)
= 4.83

Dropbox Inc's working capital turnover has shown fluctuations over the years, indicating changes in the efficiency of its working capital management. The working capital turnover ratio decreased from 13.70 in December 31, 2020, to 3.20 in December 31, 2021, representing a significant decline in efficiency. However, there was an improvement in the following years, with ratios of 7.93 in December 31, 2022, 7.94 in December 31, 2023, and 4.83 in December 31, 2024.

The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales. A higher ratio generally indicates better efficiency in managing working capital. The fluctuations in Dropbox Inc's working capital turnover suggest that the company may have made efforts to improve its working capital management in the latter years after experiencing a decline in efficiency. Further analysis of the company's financial statements and operating activities could provide insights into the reasons behind these changes and help in evaluating the overall financial health of the company.