Dropbox Inc (DBX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | 0.00 |
| Debt-to-equity ratio | — | — | — | — | 0.00 |
| Financial leverage ratio | — | — | — | — | 7.15 |
Dropbox Inc's solvency ratios indicate a strong financial position with a consistently low level of debt compared to its assets. The Debt-to-assets ratio has been at 0.00% for the years reported, suggesting that the company has no debt in relation to its total assets. This implies a low risk of insolvency or default due to leverage.
The Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio data are not available for the years beyond 2020, so it is not possible to provide a comprehensive analysis based on this information. However, the Debt-to-equity ratio being 'not available' suggests that the company has no debt compared to its equity, which is generally considered a positive sign for solvency.
Overall, based on the Debt-to-assets ratio and the available information, Dropbox Inc seems to maintain a strong solvency position with minimal debt obligations relative to its assets, indicating a lower risk of financial distress and the ability to meet its financial obligations effectively.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 34.99 | 25.23 | 108.03 | 24.07 | 11.22 |
Dropbox Inc's interest coverage ratio has shown a positive trend over the past five years. As of December 31, 2020, the interest coverage ratio was 11.22, indicating that the company's operating income was able to cover its interest expense approximately 11 times.
By December 31, 2021, the interest coverage ratio improved significantly to 24.07, signifying a stronger ability to meet interest obligations. Over the subsequent years, the trend continued to strengthen, with ratios of 108.03, 25.23, and 34.99 recorded for the years ending in 2022, 2023, and 2024, respectively.
The consistent increase in the interest coverage ratio is a positive indicator of Dropbox Inc's financial health and its ability to comfortably meet its interest payments with operating income. This trend suggests an improving profitability and liquidity position, which bodes well for the company's financial stability and ability to service debt obligations.