DigitalOcean Holdings Inc (DOCN)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 314,672 | 313,442 | 304,769 | 293,795 | 290,092 | 272,661 | 256,144 | 236,604 | 211,927 | 196,146 | 182,922 | 178,253 | 170,595 |
| Payables | US$ in thousands | 54,565 | 12,946 | 9,465 | 4,536 | 3,957 | 14,306 | 9,595 | 11,005 | 21,138 | 11,762 | 17,759 | 16,329 | 12,657 |
| 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $314,672K ÷ $54,565K
= 5.77
The payables turnover ratio measures the efficiency with which DigitalOcean Holdings Inc pays its suppliers. A higher payables turnover ratio indicates the company is paying its suppliers more frequently within a given period.
Based on the data provided:
- The payables turnover ratio fluctuated over the analyzed periods, ranging from a low of 5.77 to a high of 73.31.
- The company experienced a significant increase in payables turnover from December 31, 2023, to March 31, 2024, reaching its peak at 73.31.
- This was followed by a decline in the payables turnover ratio in subsequent periods, indicating a potential change in the company's payment practices.
- The ratio dropped to 5.77 by December 31, 2024, suggesting a slower rate of paying suppliers compared to earlier periods.
Overall, DigitalOcean Holdings Inc's payables turnover ratio shows variability in how quickly the company settles its payables with suppliers, indicating fluctuations in its working capital management and payment strategies during the analyzed periods.
Peer comparison
Dec 31, 2024