Dropbox Inc (DBX)

Cash conversion cycle

		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
Cash conversion cycle	days	0.74	-1.81	-2.10	-1.05	-0.76	-2.09	-1.24	0.08	1.56	-1.14	-2.12	-0.62	1.66	0.10	0.82	-4.40	-2.78	5.28	2.02	3.26

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 11.03 – 10.29
= 0.74

Dropbox Inc's cash conversion cycle has shown fluctuations over the past eight quarters, ranging from -12.52 days to -25.89 days. A negative cash conversion cycle indicates that the company is able to convert its investments in inventory and accounts receivable into cash more efficiently than paying off its accounts payable.

In Q4 2023, the cash conversion cycle improved to -19.34 days compared to the previous quarter, suggesting the company's ability to manage its working capital more effectively. However, the cycle is still slightly higher than the lowest point reached in Q1 2022 at -12.52 days.

Overall, Dropbox Inc has demonstrated a consistent trend of maintaining a negative cash conversion cycle, indicating strong cash flow management and efficiency in converting its operational activities into cash.