Dropbox Inc (DBX)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 452,300 | 453,600 | 553,200 | 335,800 | -256,300 |
| Total stockholders’ equity | US$ in thousands | -752,400 | -165,800 | -309,400 | -293,900 | 333,800 |
| ROE | — | — | — | — | -76.78% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $452,300K ÷ $-752,400K
= —
Dropbox Inc's return on equity (ROE) has been showing a negative trend, with a significant decrease to -76.78% as of December 31, 2020. The subsequent years up to December 31, 2024, are not available in the data provided, indicating a lack of improvement or deterioration in the ROE. Negative ROE signifies that the company's net income is insufficient to generate positive returns for shareholders equity. This could be attributed to various factors such as high debt levels, low profitability, or inefficient use of assets. It is crucial for Dropbox Inc to address the reasons behind the negative ROE and implement strategies to enhance shareholder value and financial performance.
Peer comparison
Dec 31, 2024