Dropbox Inc (DBX)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	334,200	486,400	551,300	443,200	343,600	359,200
Short-term investments	US$ in thousands	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	783,400	614,400	607,700	587,700	629,200	556,000
Total current liabilities	US$ in thousands	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	1,014,800	948,300	903,100	865,800
Cash ratio		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	1.14	1.09	1.08	1.06

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 for Dropbox Inc has displayed some fluctuations over the past eight quarters. In Q1 2022, the cash ratio was at its highest point of 1.41, indicating that the company had $1.41 in cash and cash equivalents for every dollar of current liabilities. Subsequently, there was a downward trend in the cash ratio for the next three quarters, reaching its lowest point at 1.12 in Q2 2023. This suggests a slight decrease in the company's liquidity position during that period.

However, the cash ratio saw a slight improvement in Q3 2023 at 1.17 and further increased to 1.21 in Q4 2023. While the ratio has not yet returned to the peak level observed in Q1 2022, the upward trend in the most recent quarters indicates an improvement in Dropbox Inc's ability to cover its short-term obligations with cash and cash equivalents. Overall, the company appears to have maintained a reasonably strong liquidity position, albeit with some fluctuations in the cash ratio over the analyzed period.