Dropbox Inc (DBX)

Current 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
Total current assets	US$ in thousands	1,516,600	1,467,100	1,380,500	1,399,700	1,489,800	1,579,700	1,593,100	1,622,900	1,849,800	2,056,300	2,067,300	2,034,000	1,227,500	1,330,200	1,222,300	1,195,200	1,243,200	1,133,600	1,067,700	1,007,600
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
Current ratio		1.26	1.23	1.17	1.21	1.25	1.37	1.40	1.45	1.57	1.75	1.84	1.89	1.13	1.30	1.24	1.23	1.23	1.20	1.18	1.16

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,516,600K ÷ $1,201,500K
= 1.26

Dropbox Inc's current ratio has exhibited some fluctuations over the past eight quarters, ranging from a low of 1.17 to a high of 1.45. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a healthy liquidity position.

Analyzing the trend, the current ratio has shown a general decline since Q2 2022, dropping from 1.45 to 1.26 in Q4 2023. Even though the ratio has fluctuated around this decreasing trend, it is important to note that the current ratio has remained above 1 in all periods, indicating that Dropbox Inc has generally been able to meet its short-term obligations.

While a current ratio above 1 is positive, a declining trend may indicate potential challenges in managing liquidity or an increase in short-term liabilities relative to current assets. It is essential for the company to monitor this trend closely to ensure that it can continue to meet its short-term financial obligations effectively.