Dropbox Inc (DBX)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.46 | 0.44 | 0.44 | 0.00 | 0.00 |
| Debt-to-capital ratio | 1.14 | 1.29 | 1.27 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | — | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | 7.15 | 3.34 |
Dropbox Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been increasing over the years, reaching 0.56 in 2023, which suggests that 56% of the company's assets are financed by debt. This trend indicates a higher reliance on debt financing to support the company's asset base.
The debt-to-capital ratio has also shown an upward trend, reaching 1.11 in 2023. This ratio indicates that 111% of the company's capital structure is financed by debt. The increasing trend in this ratio may suggest a higher level of financial risk, as the company is relying more on debt to fund its operations and growth.
The debt-to-equity ratio was not provided for the recent years, but in 2020 and 2019, the company had ratios of 0.81 and 0.27 respectively. These ratios indicate the proportion of debt to equity in the company's capital structure. A higher debt-to-equity ratio implies higher financial leverage and risk for the company.
The financial leverage ratio was not provided for 2023, but in 2020 and 2019, it was 7.15 and 3.34 respectively. This ratio measures the company's reliance on debt financing relative to equity. A higher financial leverage ratio indicates higher financial risk and potential volatility in earnings.
Overall, the increasing trend in debt-related ratios such as debt-to-assets and debt-to-capital ratios, along with historically high debt-to-equity and financial leverage ratios, suggest that Dropbox Inc has been taking on more debt to finance its operations and growth. Investors and stakeholders should closely monitor the company's solvency position and its ability to manage its debt levels effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 36.65 | 15.50 | 21.78 | -30.44 | -8.75 |
Dropbox Inc's interest coverage ratio indicates the company's ability to meet its interest obligations with its operating profits. With a ratio of 58.79 in 2021, this signifies that the company generated operating profits nearly 59 times greater than its interest expenses for that year. The absence of data for other years makes it challenging to assess the trend over time, but a high interest coverage ratio generally implies a lower risk of default on interest payments. It suggests that Dropbox Inc has a strong ability to service its debt through its operational performance in 2021. However, it would be advisable to consider additional financial metrics and trends over multiple periods for a more comprehensive evaluation of the company's financial health.