Digi International Inc (DGII)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	189,850	192,646	191,217	188,891	183,348	171,939	161,676	152,108	146,223	141,974	141,145	137,611	135,573	135,299	134,013	133,862	134,491	135,168	135,308	135,094
Payables	US$ in thousands	16,679	17,148	21,503	20,725	30,633	32,373	27,949	22,769	22,880	22,586	18,840	18,911	22,472	28,067	21,929	17,421	23,165	21,183	15,460	14,628
Payables turnover		11.38	11.23	8.89	9.11	5.99	5.31	5.78	6.68	6.39	6.29	7.49	7.28	6.03	4.82	6.11	7.68	5.81	6.38	8.75	9.24

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $189,850K ÷ $16,679K
= 11.38

The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating the number of times a company pays off its average accounts payable balance during a specific period.

Analyzing the payables turnover of Digi International, Inc. over the past eight quarters reveals fluctuations in the company's ability to manage its payables effectively.

The payables turnover ratio has been consistently above 5, indicating that Digi International tends to pay off its accounts payable balances more than 5 times a year. This suggests that the company maintains a relatively efficient payables management system.

In recent quarters, there has been a general increasing trend in the payables turnover ratio, reaching its peak in Q1 2024 at 11.15. This improvement indicates that the company has been more efficient in settling its accounts payable obligations compared to previous quarters.

Overall, the increasing trend and the consistently high payables turnover ratio of Digi International, Inc. suggest that the company has been successful in managing and paying off its accounts payable effectively, improving its liquidity and financial health.