Dropbox(US:DBX) ZACKS·2025-03-04 21:01Core Insights - The article emphasizes the importance of liquidity in a company's ability to meet debt obligations and drive business growth, suggesting that investors consider adding stocks with high liquidity to their portfolios for better returns [1][2]. Group 1: Liquidity Measures - Current Ratio: Measures current assets against current liabilities, with a ratio below 1 indicating more liabilities than assets. An ideal range is between 1 and 3 [3]. - Quick Ratio: Indicates a company's ability to pay short-term obligations, with a desirable ratio of more than 1 [4]. - Cash Ratio: The most conservative measure, focusing on cash and cash equivalents relative to current liabilities. A ratio greater than 1 is desirable but may indicate inefficiency [5]. Group 2: Screening Parameters for Liquid Stocks - Asset Utilization: A measure of efficiency, calculated as total sales over the last 12 months divided by the average total assets over the last four quarters. Companies with a ratio higher than their industry average are considered efficient [6]. - Growth Score: A proprietary metric added to ensure that liquid and efficient stocks have solid growth potential, with a Growth Score of A or B indicating better performance [7][8]. Group 3: Top Liquid Stocks - Dropbox, Inc. (DBX): Reported Q4 2024 non-GAAP earnings of 73 cents per share, exceeding estimates by 17.74% and showing a 46% year-over-year increase. Revenues reached $643.6 million, up 1.4% year over year [9][10][11]. - Ubiquiti Inc. (UI): Achieved net sales of $599.9 million in Q2 fiscal 2025, up from $465 million year over year, with a Growth Score of A [12][14]. - EverQuote, Inc. (EVER): Total revenues of $147.5 million increased 164.8% year over year, with automotive insurance revenues rising 200% year over year [15][17][18]. - Moelis & Company (MC): Reported adjusted earnings of $1.18 per share in Q4 2024, significantly beating estimates, with total revenues of $438.7 million [19][20][21].