Dropbox Inc (DBX)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 509,800 | 554,400 | 192,700 | 299,300 | -250,200 |
| Revenue | US$ in thousands | 2,548,200 | 2,501,600 | 2,324,900 | 2,157,900 | 1,913,900 |
| Pretax margin | 20.01% | 22.16% | 8.29% | 13.87% | -13.07% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $509,800K ÷ $2,548,200K
= 20.01%
Dropbox Inc's pretax margin has shown significant fluctuations over the years. In December 31, 2020, the company reported a negative pretax margin of -13.07%, indicating that the company's expenses exceeded its earnings before tax. However, by December 31, 2021, Dropbox reversed this trend and achieved a pretax margin of 13.87%, reflecting improved profitability.
In the following years, Dropbox maintained positive pretax margins, albeit with fluctuations. By December 31, 2022, the pretax margin decreased to 8.29%, suggesting a moderation in profitability. However, the company's performance improved again by December 31, 2023, with a pretax margin of 22.16%, indicating strong earnings relative to revenue.
By December 31, 2024, Dropbox continued to perform well, as evidenced by a pretax margin of 20.01%. Overall, despite the fluctuations, Dropbox demonstrated resilience and the ability to enhance its profitability over the years, as indicated by the positive pretax margins reported.
Peer comparison
Dec 31, 2024