Dropbox Inc (DBX)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,548,200	2,539,600	2,533,800	2,521,800	2,501,600	2,465,400	2,423,400	2,373,600	2,324,900	2,291,600	2,250,800	2,208,700	2,157,900	2,096,500	2,033,700	1,970,500	1,913,900	1,855,800	1,796,600	1,730,700
Total current assets	US$ in thousands	1,738,400	1,045,500	1,207,700	1,315,800	1,493,200	1,467,100	1,380,500	1,399,700	1,489,800	1,579,700	1,593,100	1,622,900	1,849,800	2,056,300	2,067,300	2,034,000	1,227,500	1,330,200	1,222,300	1,195,200
Total current liabilities	US$ in thousands	1,210,800	1,202,100	1,184,000	1,166,800	1,201,500	1,196,800	1,177,200	1,152,500	1,196,500	1,156,400	1,135,700	1,117,400	1,175,800	1,175,100	1,125,000	1,074,900	1,087,800	1,026,900	981,800	970,800
Working capital turnover		4.83	—	106.91	16.92	8.58	9.12	11.92	9.60	7.93	5.41	4.92	4.37	3.20	2.38	2.16	2.05	13.70	6.12	7.47	7.71

December 31, 2024 calculation

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

Dropbox Inc's working capital turnover has exhibited fluctuations over the reporting periods provided. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is generating more sales revenue per unit of working capital.

From March 31, 2020, to June 30, 2022, the working capital turnover ratio ranged from 2.05 to 5.41, suggesting some variability in the efficiency of working capital management during this period. The ratio increased significantly to 16.92 on March 31, 2024, before showing a sharp increase to 106.91 on June 30, 2024. Such a drastic spike may indicate either exceptional efficiency in utilizing working capital or possible data irregularities.

However, the ratio then recorded an unavailable figure on September 30, 2024, which might be due to data unavailability or other factors impacting the calculation. The ratio decreased to 4.83 by December 31, 2024, showcasing a decline in the efficiency of working capital turnover compared to the previous reporting period.

Overall, the trend in Dropbox Inc's working capital turnover ratio reflects varying levels of efficiency in utilizing working capital to generate revenue. It is essential for the company to maintain a balance in managing its working capital to ensure optimal operational performance and financial health.