DigitalOcean Holdings Inc (DOCN)

Number of days of payables

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Payables turnover 5.77 24.21 32.20 64.77 73.31 19.06 26.70 21.50 10.03 16.68 10.30 10.92 13.48
Number of days of payables days 63.29 15.08 11.34 5.64 4.98 19.15 13.67 16.98 36.41 21.89 35.44 33.44 27.08

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.77
= 63.29

The number of days of payables for DigitalOcean Holdings Inc has shown fluctuations over the reviewed periods. As of December 31, 2021, the company took an average of 27.08 days to pay its payables on average. This number increased to 33.44 days by March 31, 2022, and further to 35.44 days by June 30, 2022.

However, there was a significant improvement in the company's payment efficiency by September 30, 2022, when the number of days of payables reduced to 21.89 days. The trend continued positively as of December 31, 2022, with 36.41 days, which then dropped to 16.98 days by March 31, 2023, indicating a quicker turnaround in making payments to suppliers.

By June 30, 2023, the number of days of payables decreased significantly to 13.67 days, followed by a mild increase to 19.15 days by September 30, 2023. Notably, the company managed to reduce its payable days to 4.98 days by December 31, 2023, and maintained a very low number of days at 5.64 by March 31, 2024.

However, as of June 30, 2024, there was an increase in the number of days of payables to 11.34 days, which then rose to 15.08 days by September 30, 2024. The trend took a significant turn by December 31, 2024, with 63.29 days indicating a potential delay in payments to suppliers during that period.

These variations in the number of days of payables provide insights into DigitalOcean Holdings Inc's payment practices and its ability to manage its outstanding supplier obligations efficiently over the reviewed periods.