Dropbox Inc (DBX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.96% | 80.60% | 79.30% | 78.30% | 75.32% |
| Operating profit margin | 21.56% | 7.77% | 12.70% | -14.47% | -4.85% |
| Pretax margin | 22.18% | 8.26% | 13.85% | -13.07% | -3.13% |
| Net profit margin | 18.15% | 23.71% | 15.54% | -13.38% | -3.17% |
Dropbox Inc has shown consistent improvement in its profitability ratios over the last five years. The gross profit margin has steadily increased from 75.26% in 2019 to 80.87% in 2023, indicating the company's ability to efficiently manage its production costs.
Operating profit margin has also remained stable at around 15-16% over the past three years, showing effective cost management and operational efficiency. The significant improvement from 6.33% in 2020 to 15.33% in 2021 suggests enhanced profitability through better operating performance.
Pretax margin has shown fluctuations, with a notable drop in 2020 followed by a substantial improvement in 2023 to 22.16%. This indicates the company's varying levels of profitability before accounting for taxes, potentially influenced by factors such as revenue growth and cost control measures.
Net profit margin has demonstrated a remarkable improvement from negative figures in 2019 and 2020 to positive margins in the following years, reaching 18.13% in 2023. This indicates that Dropbox Inc has effectively managed its expenses and generated higher net income relative to its revenue in recent years, leading to enhanced overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.06% | 5.83% | 8.88% | -11.60% | -2.98% |
| Return on assets (ROA) | 15.20% | 17.79% | 10.86% | -10.74% | -1.95% |
| Return on total capital | 44.45% | 17.03% | 25.49% | -82.98% | -9.96% |
| Return on equity (ROE) | — | — | — | -76.78% | -6.52% |
Dropbox Inc's profitability ratios have shown significant improvements over the past five years. The operating return on assets (Operating ROA) has been steadily increasing from 2020 to 2023, indicating that the company is generating more income from its assets. The return on assets (ROA) also reflects a positive trend, with a notable improvement in 2023 compared to the negative values in 2020 and 2019, indicating better asset utilization and profitability.
Return on total capital has consistently improved over the years, reflecting the company's ability to generate profits from its total capital employed. Despite missing data for Return on Equity (ROE) for the latest years, historical figures show a positive trend, with a significant improvement from a low point in 2020 to a positive value in 2019.
Overall, the profitability ratios suggest that Dropbox Inc has been able to enhance its operational efficiency and profitability, generating higher returns on its assets and capital over the years.