Dropbox Inc (DBX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,328,300 | 614,900 | 232,800 | 533,000 | 314,900 |
| Short-term investments | US$ in thousands | 265,900 | 741,100 | 1,110,600 | 1,185,100 | 806,400 |
| Total current liabilities | US$ in thousands | 1,210,800 | 1,201,500 | 1,196,500 | 1,175,800 | 1,087,800 |
| Cash ratio | 1.32 | 1.13 | 1.12 | 1.46 | 1.03 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,328,300K
+ $265,900K)
÷ $1,210,800K
= 1.32
The cash ratio of Dropbox Inc, which measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents, has shown fluctuations over the period from December 31, 2020, to December 31, 2024.
- As of December 31, 2020, the cash ratio was 1.03, indicating that the company had just enough cash to cover its short-term obligations.
- By December 31, 2021, the cash ratio had increased to 1.46, suggesting an improvement in the company's liquidity position.
- However, by December 31, 2022, the cash ratio decreased to 1.12, reflecting a slight decline in liquidity compared to the previous year.
- The cash ratio remained relatively stable in the subsequent years, with values of 1.13 as of December 31, 2023, and 1.32 as of December 31, 2024.
Overall, the trend in Dropbox Inc's cash ratio indicates varying levels of liquidity over the years, with fluctuations that may warrant further investigation into the company's cash management and short-term financial health.
Peer comparison
Dec 31, 2024