Dropbox (WBO:DBX) ROCE % : 24.21% (As of Dec. 2023)

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What is Dropbox ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Dropbox's annualized ROCE % for the quarter that ended in Dec. 2023 was 24.21%.

Dropbox ROCE % Historical Data

The historical data trend for Dropbox's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Dropbox ROCE % Chart

Dropbox Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-6.39

7.71

19.58

19.22

20.44

Dropbox Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															18.41	17.82	12.96	29.46	24.21

Dropbox ROCE % Calculation

Dropbox's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	351.669	/	( ( (2935.934 - 1129.496)	+	(2735.869 - 1101.775) )	/ 2 )
	=	351.669	/	( (1806.438	+	1634.094)	/ 2 )
	=	351.669	/	1720.266
	=	20.44 %

Dropbox's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	403.48	/	( ( (2820.932 - 1121.402)	+	(2735.869 - 1101.775) )	/ 2 )
	=	403.48	/	( ( 1699.53	+	1634.094 )	/ 2 )
	=	403.48	/	1666.812
	=	24.21 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Dropbox (WBO:DBX) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Dropbox (WBO:DBX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Dropbox Inc (WBO:DBX) » Definitions » ROCE %

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Address

1800 Owens Street, San Francisco, CA, USA, 94158

Website

https://www.dropbox.com

Dropbox is a leading provider of cloud-storage and content collaboration tools with an emphasis on individuals and SMB. The company was founded in 2007 and was a pioneer in cloud storage and cross-platform file syncing. Utilizing inorganic and organic means, the firm has been working on diversifying its product mix and pivoting away from the cloud-storage space.