DigitalOcean Holdings Inc (DOCN)

Number of days of payables

		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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Payables turnover		62.77	71.76	18.86	26.70	21.50	10.03	16.68	10.30	10.92	13.48
Number of days of payables	days	5.81	5.09	19.36	13.67	16.98	36.41	21.89	35.44	33.44	27.08

March 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 62.77
= 5.81

The number of days of payables for DigitalOcean Holdings Inc has fluctuated over the past few quarters. As of March 31, 2024, the company took approximately 5.81 days to pay its suppliers and vendors, showing a slight increase from the previous quarter. This indicates that the company managed its accounts payable efficiently during this period.

Looking back at historical data, the number of days of payables has ranged from a low of 5.09 days to a high of 36.41 days in recent quarters. The significant fluctuations in this ratio suggest varying payment practices and working capital management strategies by DigitalOcean Holdings Inc.

Overall, a lower number of days of payables typically indicates that the company is maintaining good relationships with its suppliers by paying them promptly. On the other hand, a higher number of days of payables may signal that the company is taking longer to settle its outstanding bills, which could impact cash flow and supplier relationships. It is essential for investors and stakeholders to monitor changes in this ratio to assess the company's liquidity and operational efficiency.