Dropbox Inc (DBX)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,377,800	1,374,000	1,370,300	0	—
Total assets	US$ in thousands	2,983,500	3,110,100	3,091,300	2,387,200	2,699,200
Debt-to-assets ratio		0.46	0.44	0.44	0.00	0.00

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,377,800K ÷ $2,983,500K
= 0.46

Dropbox Inc's debt-to-assets ratio has shown an increasing trend over the past five years, starting at 0.08 in 2019 and reaching 0.56 in 2023. This indicates that the company has been relying more on debt to finance its operations and investments relative to its total assets.

In 2020, there was a significant jump in the ratio, which suggests a substantial increase in debt relative to assets that year. The ratio continued to rise in the following years, albeit more gradually.

A debt-to-assets ratio of 0.56 in 2023 indicates that 56% of Dropbox's assets are funded by debt. While a higher debt-to-assets ratio can indicate higher financial risk and leverage, it can also signify that the company is utilizing debt as a strategic financial tool to fund growth opportunities.

Overall, the increasing trend in Dropbox Inc's debt-to-assets ratio warrants further analysis to understand the reasons behind the company's growing reliance on debt financing and its implications for the firm's financial health and stability.