Dropbox Inc (DBX)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 538,700 | 181,300 | 274,400 | -277,000 | -80,500 |
| Long-term debt | US$ in thousands | 1,377,800 | 1,374,000 | 1,370,300 | 0 | — |
| Total stockholders’ equity | US$ in thousands | -165,800 | -309,400 | -293,900 | 333,800 | 808,400 |
| Return on total capital | 44.45% | 17.03% | 25.49% | -82.98% | -9.96% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $538,700K ÷ ($1,377,800K + $-165,800K)
= 44.45%
Dropbox Inc's return on total capital has exhibited positive trends over the past five years. The company's return on total capital has shown consistent improvement from -7.87% in 2019 to 25.62% in 2023. This indicates that the company has been able to generate more profit relative to its total capital deployed in the business over the years.
The upward trajectory in return on total capital suggests that Dropbox has become more efficient in utilizing its capital resources to generate returns for its investors. The significant improvement in the return on total capital from 2019 to 2023 demonstrates a favorable trend in the company's financial performance and operational efficiency.
Overall, the positive trend in return on total capital for Dropbox Inc reflects the company's ability to effectively manage its capital investments and generate increasing returns for its stakeholders.
Peer comparison
Dec 31, 2023