What does return on equity mean?

Trailing-twelve-month net income divided by average shareholders' equity (average of the start and end of the trailing-twelve-month window). Measures the profit generated on each dollar of shareholder capital.

Dropbox DBX Return on equity

Discontinued — last reported Q4 '20

Return on equity at other companies

AppleAAPL

141.5%+3.5pp

MicrosoftMSFT

34%+0.4pp

AdobeADBE

63%+10.7pp

AmazonAMZN

21.1%-4.1pp

DocuSignDOCU

16.4%-53.8pp

Alphabet Inc.GOOGL

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Other financials

Income statement

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Revenue$629.5M+0.8%

Gross profit$501.4M-1.3%

Operating income$172.8M-6.0%

Net income$114.5M-23.8%

EPS (diluted)$0.48-5.9%

Balance sheet

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Cash & equivalents$1.2B+25.4%

Total debt$840.2M-43.1%

Total equity-$2.0B-87.0%

Total assets$3.0B+2.5%

Cash flow

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Operating cash flow$204.5M+33.0%

CapEx$1.2M+1,100%

Free cash flow$203.3M+32.3%

Valuation

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Market cap$6.06B-32.5%

Profitability

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Gross margin79.7%-2.3pp

Operating margin26.8%+6.1pp

Net margin18.7%+0.2pp

FCF margin38.8%+5.0pp

Returns & leverage

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Debt / equity3.7×—

Current ratio1.2×+0.5×

Where this comes from

Calculated from Dropbox’s reported figures.

net income/total stockholders equity=-44.9%

Based on trailing twelve months.

The official record: Dropbox’s 10-Q, filed November 4, 2022, on SEC EDGAR. View the filing →

Questions, answered.

What does return on equity mean?: Trailing-twelve-month net income divided by average shareholders' equity (average of the start and end of the trailing-twelve-month window). Measures the profit generated on each dollar of shareholder capital.