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.