DigitalOcean Holdings Inc (DOCN)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	284,732	283,967	269,743	256,144	236,604	211,927	196,146	182,922	178,253	170,595
Payables	US$ in thousands	4,536	3,957	14,306	9,595	11,005	21,138	11,762	17,759	16,329	12,657	12,689	16,187	15,149
Payables turnover		62.77	71.76	18.86	26.70	21.50	10.03	16.68	10.30	10.92	13.48

March 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $284,732K ÷ $4,536K
= 62.77

The payables turnover ratio for DigitalOcean Holdings Inc has shown significant fluctuations over the past few quarters.

On Mar 31, 2024, the payables turnover ratio was 62.77, indicating that the company paid off its accounts payable 62.77 times during the period. This was a notable increase from the previous quarter's ratio of 71.76 on Dec 31, 2023.

However, looking further back, the ratio had been fluctuating between 10 and 20 times in earlier quarters. This suggests that the company's ability to turn over its payables had improved significantly in the most recent quarters.

Overall, a higher payables turnover ratio can suggest efficient management of accounts payable and liquidity, indicating that the company is effectively managing its cash flow and supplier relationships. This improvement in payables turnover may reflect better working capital management and stronger negotiation power with suppliers. However, it is important to consider other factors and ratios in conjunction with the payables turnover ratio for a comprehensive analysis of the company's financial performance.