Dropbox Inc (DBX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,328,300 | 517,600 | 515,100 | 548,900 | 614,900 | 604,300 | 510,300 | 332,700 | 232,800 | 372,000 | 352,100 | 445,500 | 533,000 | 688,900 | 885,300 | 845,500 | 314,900 | 452,700 | 334,100 | 486,400 |
| Short-term investments | US$ in thousands | 265,900 | 373,200 | 547,400 | 627,000 | 741,100 | 704,600 | 717,200 | 920,400 | 1,110,600 | 1,081,400 | 1,094,200 | 1,050,100 | 1,185,100 | 1,239,800 | 1,058,900 | 1,070,900 | 806,400 | 773,800 | 783,500 | 614,400 |
| 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 |
| Cash ratio | 1.32 | 0.74 | 0.90 | 1.01 | 1.13 | 1.09 | 1.04 | 1.09 | 1.12 | 1.26 | 1.27 | 1.34 | 1.46 | 1.64 | 1.73 | 1.78 | 1.03 | 1.19 | 1.14 | 1.13 |
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 has shown some fluctuations over the recent quarters. The cash ratio, which measures a company's ability to cover its short-term liabilities with its most liquid assets (cash and cash equivalents), has varied between 0.74 and 1.78.
From March 31, 2020, to June 30, 2021, the cash ratio generally increased gradually from 1.13 to 1.73, indicating an improvement in the company's liquidity position. However, there was a slight decline in the cash ratio to 1.46 by December 31, 2021.
Subsequently, there was a downward trend in the cash ratio from March 31, 2022, to September 30, 2024, with occasional fluctuations. The ratio decreased to as low as 0.74 by September 30, 2024, which may suggest a potential liquidity concern or increased utilization of cash resources during this period.
By December 31, 2024, the cash ratio rose again to 1.32, indicating a partial recovery in liquidity. The volatility in the cash ratio over the periods analyzed may raise questions about the company's cash management practices and its ability to maintain sufficient liquidity to meet its short-term obligations.
Peer comparison
Dec 31, 2024