Dropbox Revenue vs. Profit Margin

DBX Stock  USD 28.37  0.15  0.53%   
Based on the key profitability measurements obtained from Dropbox's financial statements, Dropbox is yielding more profit at the present time then in previous quarter. It has a moderate chance of reporting better profitability numbers in December. Profitability indicators assess Dropbox's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
2016-03-31
Previous Quarter
634.5 M
Current Value
638.8 M
Quarterly Volatility
147.2 M
 
Yuan Drop
 
Covid
At this time, Dropbox's Price To Sales Ratio is fairly stable compared to the past year. Days Sales Outstanding is likely to rise to 11.25 in 2024, whereas Operating Cash Flow Sales Ratio is likely to drop 0.22 in 2024. At this time, Dropbox's Net Income Per E B T is fairly stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.550.8087
Way Down
Slightly volatile
For Dropbox profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dropbox to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dropbox utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dropbox's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dropbox over time as well as its relative position and ranking within its peers.
  
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Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dropbox. If investors know Dropbox will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dropbox listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.028
Earnings Share
1.73
Revenue Per Share
7.76
Quarterly Revenue Growth
0.009
Return On Assets
0.105
The market value of Dropbox is measured differently than its book value, which is the value of Dropbox that is recorded on the company's balance sheet. Investors also form their own opinion of Dropbox's value that differs from its market value or its book value, called intrinsic value, which is Dropbox's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dropbox's market value can be influenced by many factors that don't directly affect Dropbox's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dropbox's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dropbox is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dropbox's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Dropbox Profit Margin vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dropbox's current stock value. Our valuation model uses many indicators to compare Dropbox value to that of its competitors to determine the firm's financial worth.
Dropbox is rated as one of the top companies in revenue category among its peers. It also is one of the top stocks in profit margin category among its peers . The ratio of Revenue to Profit Margin for Dropbox is about  11,015,411,713 . At this time, Dropbox's Total Revenue is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dropbox's earnings, one of the primary drivers of an investment's value.

Dropbox's Earnings Breakdown by Geography

Dropbox Revenue vs. Competition

Dropbox is rated as one of the top companies in revenue category among its peers. Market size based on revenue of Information Technology industry is currently estimated at about 4.19 Billion. Dropbox totals roughly 2.5 Billion in revenue claiming about 60% of equities under Information Technology industry.

Dropbox Profit Margin vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Dropbox

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
2.5 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Dropbox

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.23 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Dropbox Profit Margin Comparison

Dropbox is currently under evaluation in profit margin category among its peers.

Dropbox Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dropbox, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dropbox will eventually generate negative long term returns. The profitability progress is the general direction of Dropbox's change in net profit over the period of time. It can combine multiple indicators of Dropbox, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-21.5 M-20.4 M
Interest Income10.5 M9.3 M
Operating Income383.5 M402.7 M
Net Income From Continuing Ops554.6 M582.3 M
Income Before Tax554.4 M582.1 M
Total Other Income Expense Net170.9 M179.4 M
Net Income Applicable To Common Shares636.2 M668 M
Net Income453.6 M476.3 M
Income Tax Expense100.8 M105.8 M
Net Interest Income16.1 M16.9 M
Non Operating Income Net Other9.3 M8.8 M
Change To Netincome125.1 M118.9 M
Net Income Per Share 1.33  1.40 
Income Quality 1.73  1.81 
Net Income Per E B T 0.82  0.97 

Dropbox Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Dropbox. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dropbox position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dropbox's important profitability drivers and their relationship over time.

Use Dropbox in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dropbox position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dropbox will appreciate offsetting losses from the drop in the long position's value.

Dropbox Pair Trading

Dropbox Pair Trading Analysis

The ability to find closely correlated positions to Dropbox could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dropbox when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dropbox - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dropbox to buy it.
The correlation of Dropbox is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dropbox moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dropbox moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dropbox can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Dropbox position

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Additional Tools for Dropbox Stock Analysis

When running Dropbox's price analysis, check to measure Dropbox's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dropbox is operating at the current time. Most of Dropbox's value examination focuses on studying past and present price action to predict the probability of Dropbox's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dropbox's price. Additionally, you may evaluate how the addition of Dropbox to your portfolios can decrease your overall portfolio volatility.