Dropbox, Inc. cash flow to debt ratio of 24.14% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Dropbox, Inc.'s free cash flow has increased 6.79% from $871.60M last year to $930.80M, signaling increasing performance

Dropbox, Inc.'s debt to equity ratio is -1.82, signaling that the company spent its equity and risk bankruptcy.

Dropbox, Inc.'s debt has increased relative to shareholder equity from -3.98 last year to -1.82 today, signaling weakened financials

Dropbox, Inc. has a net debt to EBITDA ratio of 3.26x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Dropbox, Inc.'s interest coverage ratio of 4.34 indicates that earnings with good margin can cover interest payments on company debt

Dropbox, Inc.'s profit margin was 17.75% last year and is 17.49% this year, signaling decreasing performance

Dropbox, Inc.'s short-term liabilities of $1.89B exceed its short-term assets of $1.17B, signaling financial risk

Dropbox, Inc.'s return on assets of 15.67% is higher than the 5.00% threshold, indicating efficient asset utilization

Dropbox, Inc.'s return on equity of -23.53%, is lower than 15.00%, indicating bad performance

Dropbox, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Dropbox, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Dropbox, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Dropbox, Inc. has a free cash flow yield of 11.32%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Dropbox, Inc.'s yearly earnings has increased 12.40% since last year from $452.30M to $508.40M, signaling increasing performance

Dropbox, Inc.'s yearly revenue has decreased 1.07% since last year from $2.55B to $2.52B, signaling decreasing performance

ROIC 28.56% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Dropbox, Inc.'s 3-year revenue CAGR of 2.74% is positive, indicating growing revenue over the past 3 years

Dropbox, Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Dropbox, Inc. had positive ROE in only 0 out of 5 years, indicating inconsistent returns on equity

Dropbox, Inc. is undervalued relative to its fair value price of 49.92 based on Base Cash Flow Valuation (DCF) model

Dropbox, Inc. has an earnings yield of 6.09%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Dropbox, Inc. is overvalued relative to its fair value price of 12.19 based on Base EBITDA Valuation model

Dropbox, Inc. has an EV/EBITDA ratio of 12.51x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Dropbox, Inc. is overvalued relative to its fair value price of 30.83 based on Base Earnings Fair Value model

Dropbox, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Dropbox, Inc. has negative shareholder equity; price-to-book is not meaningful and the check fails

Dropbox, Inc. has a price-to-sales ratio of 2.87x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue