DigitalOcean Holdings Inc (DOCN)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Payables turnover | 71.76 | 10.03 | 13.48 | |
| Number of days of payables | days | 5.09 | 36.41 | 27.08 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 71.76
= 5.09
The number of days of payables for DigitalOcean Holdings Inc has shown significant variability over the past three years. In 2023, the company's number of days of payables decreased significantly to 5.09 days, indicating that it takes an average of 5.09 days for the company to pay its creditors. This represents a substantial improvement compared to the previous year, 2022, where the number of days of payables was 36.41 days, suggesting a longer period for settling its payables.
Looking back further to 2021, the number of days of payables was 27.08 days, reflecting an intermediate level between the extremes of 2022 and 2023. The decrease in the number of days of payables from 2022 to 2023 may suggest more efficient management of working capital or negotiating favorable credit terms with suppliers. It is essential to monitor this ratio over time to assess the company's ability to manage its vendor payments effectively.
Peer comparison
Dec 31, 2023