Dropbox Inc (DBX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 82.53% | 80.87% | 80.89% | 79.42% | 78.34% |
| Operating profit margin | 19.08% | 21.53% | 7.80% | 12.72% | -14.47% |
| Pretax margin | 20.01% | 22.16% | 8.29% | 13.87% | -13.07% |
| Net profit margin | 17.75% | 18.13% | 23.79% | 15.56% | -13.39% |
Dropbox Inc's profitability ratios have shown overall improvement over the past five years. The company's gross profit margin has been on an upward trend, increasing from 78.34% in 2020 to 82.53% in 2024, indicating that the company has been able to effectively control its cost of goods sold.
The operating profit margin has also shown significant improvement, with a turnaround from a negative margin of -14.47% in 2020 to 19.08% in 2024. This indicates that Dropbox has been able to efficiently manage its operating expenses and generate profits from its core business operations.
Similarly, the pretax margin and net profit margin have both increased steadily over the years. The pretax margin has increased from -13.07% in 2020 to 20.01% in 2024, while the net profit margin has improved from -13.39% in 2020 to 17.75% in 2024. These ratios demonstrate that Dropbox has been successful in increasing its profitability and generating higher net income relative to its total revenue.
Overall, the improving profitability ratios suggest that Dropbox Inc has been successful in enhancing its operational efficiency and controlling costs, ultimately leading to higher profitability over the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.62% | 18.06% | 5.83% | 8.88% | -11.60% |
| Return on assets (ROA) | 13.60% | 15.20% | 17.79% | 10.86% | -10.74% |
| Return on total capital | — | — | — | — | 36.31% |
| Return on equity (ROE) | — | — | — | — | -76.78% |
Dropbox Inc's profitability ratios show a mix of performance over the years. The Operating Return on Assets (Operating ROA) has seen fluctuations, starting with a negative figure in 2020, improving to 8.88% in 2021, and then decreasing to 5.83% in 2022, before experiencing significant growth to reach 18.06% in 2023 and then slightly decreasing to 14.62% in 2024.
The Return on Assets (ROA) also displayed variability, starting at -10.74% in 2020, jumping to 10.86% in 2021, peaking at 17.79% in 2022, and then decreasing to 15.20% in 2023 and 13.60% in 2024.
Furthermore, the Return on Total Capital was only available for 2020, showing a strong figure of 36.31%. For the subsequent years, data for this ratio was not provided.
Return on Equity (ROE) data was only available for 2020, depicting a concerning -76.78%. Unfortunately, information for ROE was not available for the years following 2020.
Overall, Dropbox Inc has shown some positive trends in profitability, particularly in ROA, while experiencing fluctuations in other ratios. The company may benefit from improving its ROE and providing more consistent data for analysis over time to gain a deeper insight into its financial performance.