Dropbox Inc (DBX)

Interest coverage

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	538,700	190,900	149,500	175,900	181,300	331,900	319,900	321,400	274,400	-142,400	-189,700	-261,300	-277,000	63,000	14,400	-32,400	-80,500	-85,900	-76,200	-49,400
Interest expense (ttm)	US$ in thousands	14,700	11,800	11,700	11,700	11,700	12,900	13,000	12,900	12,600	11,500	10,500	9,700	9,100	2,800	5,000	7,100	9,200	8,900	8,700	8,300
Interest coverage		36.65	16.18	12.78	15.03	15.50	25.73	24.61	24.91	21.78	-12.38	-18.07	-26.94	-30.44	22.50	2.88	-4.56	-8.75	-9.65	-8.76	-5.95

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $538,700K ÷ $14,700K
= 36.65

Based on the provided data, Dropbox Inc's interest coverage ratio has been improving over the past few quarters. In Q1 2022, the interest coverage ratio was 62.11, indicating that the company generated more than enough operating income to cover its interest expenses. This ratio further improved in subsequent quarters, reaching 68.52 in Q2 2022 and significantly higher at 224.12 in Q3 2022.

Unfortunately, there is no data available for interest coverage for the latest quarters of Q1 to Q4 2023. However, based on the trend observed from Q1 2022 to Q3 2022, it suggests a positive trajectory for Dropbox Inc's ability to cover its interest expenses with operating income. This improving trend indicates that the company may be in a strong financial position to meet its debt obligations and may have lower financial risk associated with its debt structure.