Dropbox Inc (DBX)

Working capital 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 current assets	US$ in thousands	1,516,600	1,489,800	1,849,800	1,227,500	1,243,200
Total current liabilities	US$ in thousands	1,201,500	1,196,500	1,175,800	1,087,800	1,014,800
Working capital turnover		7.93	7.96	3.21	13.71	7.27

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,499,000K ÷ ($1,516,600K – $1,201,500K)
= 7.93

Dropbox Inc's working capital turnover has shown fluctuations over the past five years. In 2023 and 2022, the company achieved working capital turnover ratios of 7.94 and 7.93, respectively, indicating that the company generated approximately 7.94 times and 7.93 times revenue from its working capital during those years.

The significant increase in working capital turnover in 2020, with a ratio of 13.70, suggests that the company efficiently utilized its working capital to generate revenue during that year. On the other hand, the low working capital turnover ratio of 3.20 in 2021 indicates a decrease in efficiency in turning working capital into revenue.

Overall, the trend in working capital turnover for Dropbox Inc shows variability, with fluctuations in efficiency in utilizing working capital to generate revenue. It is important for the company to closely monitor and manage its working capital to ensure optimal performance in the future.