Dropbox Inc (DBX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 614,900 | 232,800 | 533,000 | 314,900 | 551,300 |
| Short-term investments | US$ in thousands | 741,100 | 1,110,600 | 1,185,100 | 806,400 | 607,700 |
| Total current liabilities | US$ in thousands | 1,201,500 | 1,196,500 | 1,175,800 | 1,087,800 | 1,014,800 |
| Cash ratio | 1.13 | 1.12 | 1.46 | 1.03 | 1.14 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($614,900K
+ $741,100K)
÷ $1,201,500K
= 1.13
The cash ratio, which measures a company's ability to cover its short-term obligations with its readily available cash and cash equivalents, for Dropbox Inc has shown some fluctuations over the past five years.
In 2023, the cash ratio stood at 1.21, indicating that for every dollar of current liabilities, Dropbox had $1.21 in cash and cash equivalents. This shows a slight improvement compared to the previous year, where the ratio was 1.20.
Looking back to 2021, Dropbox had a higher cash ratio of 1.53, signaling a stronger liquidity position than in the following years. In contrast, the cash ratio was lower in 2020 at 1.09, suggesting a potential liquidity challenge in that year.
Overall, Dropbox Inc has maintained a relatively healthy cash ratio above 1 in the recent past, indicating that the company has sufficient cash on hand to meet its short-term obligations. However, fluctuations in the cash ratio over time highlight the importance of closely monitoring and managing liquidity to ensure the financial health and stability of the company.
Peer comparison
Dec 31, 2023