Dropbox Inc (DBX)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	453,600	553,200	335,800	-256,300	-52,700
Total stockholders’ equity	US$ in thousands	-165,800	-309,400	-293,900	333,800	808,400
ROE		—	—	—	-76.78%	-6.52%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $453,600K ÷ $-165,800K
= —

Return on equity (ROE) is a key financial ratio that indicates the profitability a company has generated from its equity investment. The ROE for Dropbox Inc has significantly improved over the years, as seen from the negative trend in the ROE figures. In 2019, the company had an ROE of -6.52%, which improved to -76.78% in 2020. While the negative values indicate that the company's net income was insufficient to cover its equity, the increasing trend suggests a worsening financial performance. It is important for investors to closely monitor Dropbox Inc's ROE in the future to assess the company's ability to generate profit from shareholders' equity.