Dropbox Inc (DBX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 614,900 | 232,800 | 533,000 | 314,900 | 551,300 |
| Short-term investments | US$ in thousands | 741,100 | 1,110,600 | 1,185,100 | 806,400 | 607,700 |
| Receivables | US$ in thousands | 75,600 | 60,300 | 53,700 | 46,100 | 44,100 |
| Total current liabilities | US$ in thousands | 1,201,500 | 1,196,500 | 1,175,800 | 1,087,800 | 1,014,800 |
| Quick ratio | 1.19 | 1.17 | 1.51 | 1.07 | 1.19 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($614,900K
+ $741,100K
+ $75,600K)
÷ $1,201,500K
= 1.19
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.
Based on the data provided, Dropbox Inc's quick ratio has been relatively stable over the past five years, ranging from 1.13 to 1.57. In 2023, the quick ratio was 1.26, slightly higher than the previous year's ratio of 1.25. This implies that Dropbox Inc had $1.26 of liquid assets available to cover each dollar of current liabilities at the end of 2023.
Having a quick ratio above 1 indicates that Dropbox Inc has a sufficient level of liquid assets to meet its short-term obligations. The company's quick ratio trend over the years suggests that it has maintained a healthy liquidity position, which is a positive indicator of its financial health and ability to navigate short-term financial challenges.
Peer comparison
Dec 31, 2023