Dropbox Inc (DBX)

Quick 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	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
Receivables	US$ in thousands	75,600	64,100	60,300	57,600	60,300	49,700	46,700	44,600	53,700	40,900	52,200	50,500	46,100	49,600	45,600	36,900	44,100	52,400	41,000	44,400
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
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

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 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 more liquid assets than current liabilities, suggesting strong short-term financial health.

For Dropbox Inc, the quick ratio has been relatively stable over the past eight quarters, ranging from 1.17 to 1.45. This indicates that the company has consistently maintained a healthy level of liquid assets compared to its current liabilities, which is a positive sign for investors and creditors.

The quick ratio peaked at 1.45 in Q1 2022, indicating the highest level of liquidity relative to current liabilities during the analyzed period. However, there has been a slight downward trend since then, with the ratio decreasing to 1.26 in Q4 2023. While the current ratio of 1.26 is still above 1, indicating a solid liquidity position, investors may want to monitor whether this trend continues and whether the company maintains a prudent level of liquid assets to cover its short-term obligations.