Dropbox Inc (DBX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.46 | 0.46 | 0.47 | 0.46 | 0.44 | 0.51 | 0.50 | 0.48 | 0.44 | 0.41 | 0.41 | 0.41 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 1.14 | 1.34 | 1.43 | 1.36 | 1.29 | 1.76 | 1.65 | 1.51 | 1.27 | 1.13 | 1.07 | 1.06 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | 7.15 | 3.36 | 3.41 | 3.39 | 3.34 | 3.26 | 3.24 | 3.02 |
The solvency ratios of Dropbox Inc, as observed through its debt-to-assets, debt-to-capital, and financial leverage ratios, provide insights into the company's ability to meet its financial obligations. Over the past eight quarters, the debt-to-assets ratio has been relatively stable, ranging between 0.53 and 0.56. This indicates that the company relies on debt to finance approximately 53% to 56% of its total assets, suggesting a moderate level of leverage.
In contrast, the debt-to-capital ratio has shown more variability, fluctuating between 1.11 and 1.33 during the same period. This ratio reflects the proportion of the company's capital structure that is financed through debt, and an increasing trend may signal a higher risk due to higher debt levels. Dropbox's debt-to-capital ratio reaching as high as 1.33 in Q2 2023 indicates a significant reliance on debt financing relative to equity.
Unfortunately, the data does not provide information on the debt-to-equity ratio, which could have offered further insights into the company's leverage position. Similarly, the financial leverage ratio, which typically compares total assets to equity, is not available for analysis.
Overall, while the debt-related ratios suggest that Dropbox Inc maintains a moderate level of debt relative to its assets and capital structure, the trend in the debt-to-capital ratio warrants monitoring to assess potential implications for the company's solvency and financial health. Further analysis, including the debt-to-equity and financial leverage ratios, could provide a more comprehensive view of Dropbox's solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the available data provided, the interest coverage ratio for Dropbox Inc in the latest quarter (Q4 2023) is not explicitly given. However, in the previous quarters, the interest coverage ratios for Q3 2022, Q2 2022, and Q1 2022 were 224.12, 68.52, and 62.11, respectively.
The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income. A higher ratio suggests that the company is more capable of covering its interest expenses from its operating earnings. In Q3 2022, Dropbox Inc had a very high interest coverage ratio of 224.12, indicating a strong ability to pay interest on outstanding debt.
In subsequent quarters, although the ratios have decreased from the peak in Q3 2022, they remain above 1, indicating that Dropbox Inc is still able to meet its interest obligations, albeit with a tighter margin.
Without the specific interest coverage ratio for Q4 2023, a comprehensive analysis is not possible. However, monitoring this ratio over time can provide insights into the company's financial health and its ability to manage its debt obligations.