Dropbox Inc (DBX)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 7.15 | 3.36 | 3.41 | 3.39 |
Dropbox Inc's solvency ratios indicate a strong financial position with consistently low debt-related ratios. The Debt-to-assets ratio remained at 0.00 across all periods, suggesting that the company's total debt is negligible in comparison to its total assets. Similarly, both the Debt-to-capital ratio and Debt-to-equity ratio were not available for analysis, likely indicating minimal debt relative to the company's capital and equity.
The Financial leverage ratio showed some fluctuation, with a peak of 7.15 in December 2020, indicating a higher degree of financial leverage at that time. However, the lack of data for subsequent periods suggests a shift in focus or reporting methodology. Overall, the data suggests that Dropbox Inc has maintained a conservative approach to leverage and debt, which may indicate a lower risk of financial distress and solid solvency.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 255.95 | 121.02 | 55.57 | 34.33 | 22.83 | 22.09 | 24.86 | 36.57 | 50.21 | 72.56 | 69.36 | 62.89 | 59.60 | 58.11 | 72.84 | 67.04 | 34.63 | 4.17 | 0.81 | -1.60 |
Dropbox Inc's interest coverage ratio provides insight into the company's ability to cover its interest expenses with its operating income. The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the total interest expenses. A higher ratio indicates better ability to cover interest payments.
Based on the data provided, we observe fluctuations in Dropbox Inc's interest coverage ratio over time. The interest coverage ratio for Dropbox Inc was negative in March 2020, indicating that the company's EBIT was insufficient to cover its interest expenses. However, there has been a significant improvement in the ratio since then, with an upward trend in subsequent periods.
The interest coverage ratio improved consistently from March 2020 to December 2022, reaching its peak at 255.95 in December 2024. This indicates that Dropbox Inc's operating income was significantly higher than its interest expenses during this period.
It is worth noting that the interest coverage ratio started declining from the peak in December 2024 to March 2024, reaching a low of 22.09 in September 2023. While the ratio has fluctuated, it has generally remained at a healthy level above 1, signifying that Dropbox Inc has been able to comfortably cover its interest payments.
Overall, the trend in Dropbox Inc's interest coverage ratio reflects the company's ability to manage its interest obligations efficiently over the analyzed period.