Datadog Inc (DDOG)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,684,280	2,128,360	1,675,100	1,028,780	603,466
Receivables	US$ in thousands	598,919	509,279	399,551	268,824	163,359
Receivables turnover		4.48	4.18	4.19	3.83	3.69

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,684,280K ÷ $598,919K
= 4.48

The receivables turnover ratio of Datadog Inc. demonstrates a consistent upward trend over the observed period from December 31, 2020 to December 31, 2024. Beginning at a ratio of 3.69 in 2020, the ratio modestly increased to 3.83 in 2021, indicating a slight improvement in the company's efficiency in converting receivables into cash. The upward trajectory continued into 2022, reaching 4.19, further suggesting enhanced collection practices or stronger receivables management. In 2023, the ratio remained relatively stable at 4.18, reflecting sustained efficiency levels. The progression persisted into 2024, with the ratio advancing to 4.48, the highest point in the series, indicating continued improvement in the company's receivables turnover.

Overall, this incremental increase in the receivables turnover ratio implies that Datadog Inc. has been increasingly effective in collecting its receivables over time. The trend suggests improved cash flow management and potentially stronger credit policies, which contribute to faster collection cycles. The stability observed in 2023 followed by further improvement in 2024 underscores ongoing operational efficiencies. This pattern points to a positive development in the company's liquidity position concerning its receivables management strategy over the analyzed period.