Dropbox Inc (DBX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 1.19 | 1.15 | 1.09 | 1.14 | 1.17 | 1.30 | 1.31 | 1.38 | 1.51 | 1.68 | 1.77 | 1.83 | 1.07 | 1.24 | 1.18 | 1.17 | 1.19 | 1.14 | 1.12 | 1.11 |
| 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 |
Dropbox Inc's liquidity ratios show a consistent trend over the recent quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been relatively stable around 1.20 to 1.40. This indicates that the company has a sufficient level of current assets to meet its current liabilities.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows stability around the same range as the current ratio. This suggests that Dropbox Inc has a healthy level of liquid assets to cover its short-term obligations without relying on inventory.
The cash ratio, reflecting the company's ability to settle immediate liabilities with its cash and cash equivalents, exhibits a similar pattern of consistency, ranging from 1.12 to 1.41. This indicates that Dropbox Inc maintains a strong liquidity position with a significant proportion of cash on hand relative to its current liabilities.
Overall, the stable liquidity ratios of Dropbox Inc suggest that the company is effectively managing its short-term financial obligations and has a sound liquidity position to support its operations and future growth initiatives.
Additional liquidity measure
| 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 conversion cycle | days | 0.74 | -1.81 | -2.10 | -1.05 | -0.76 | -2.09 | -1.24 | 0.08 | 1.56 | -1.14 | -2.12 | -0.62 | 1.66 | 0.10 | 0.82 | -4.40 | -2.78 | 5.28 | 2.02 | 3.26 |
Dropbox Inc's cash conversion cycle has fluctuated over the past quarters, but generally reflects efficient management of working capital. The company's cash conversion cycle has improved from Q1 2022 to Q4 2023, with a decrease in days, indicating the company is efficiently converting its investments in inventory and accounts receivable into cash.
The negative values suggest that Dropbox is able to collect cash from its sales and turn it back into cash to pay its suppliers and expenses at a faster rate than it takes to sell inventory and collect receivables. This efficient management of the cash conversion cycle can positively impact the company's liquidity and profitability by reducing the time it takes to convert sales into cash and manage working capital effectively. It is important for investors and stakeholders to continue monitoring Dropbox Inc's cash conversion cycle to assess the company's ability to efficiently manage its working capital and cash flow.