DigitalOcean Holdings Inc (DOCN)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Payables turnover | 5.77 | 74.65 | 10.03 | 13.48 | |
| Number of days of payables | days | 63.29 | 4.89 | 36.41 | 27.08 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.77
= 63.29
DigitalOcean Holdings Inc's number of days of payables has shown significant fluctuations over the years. As of December 31, 2021, the company took approximately 27.08 days to pay its suppliers. By December 31, 2022, this period increased to about 36.41 days, indicating a potential slowdown in the company's payment efficiency.
However, the trend reversed dramatically by December 31, 2023, with the number of days of payables dropping substantially to just 4.89 days. This sharp decrease suggests that DigitalOcean may have improved its payment processing or renegotiated payment terms with suppliers.
Nevertheless, by December 31, 2024, the number of days of payables surged to approximately 63.29 days, reaching a new high. This increase may signal potential challenges in managing cash flow or extended payment terms negotiated with suppliers, which could impact the company's liquidity position.
Overall, the fluctuating pattern in DigitalOcean's number of days of payables raises questions about its cash management strategies and relationships with suppliers. Investors and stakeholders may want to monitor these trends closely to assess the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024