Doximity Inc (DOCS)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | |
|---|---|---|---|
| Inventory turnover | — | 10.45 | — |
| Receivables turnover | 4.59 | 3.84 | 4.17 |
| Payables turnover | 22.49 | 42.05 | 85.93 |
| Working capital turnover | 0.62 | 0.50 | 0.43 |
Inventory turnover is a measure of how efficiently a company is managing its inventory. In this case, the inventory turnover data is missing for the most recent year. However, in the prior year (Mar 31, 2023), Doximity Inc had an inventory turnover ratio of 10.45, indicating that the company was able to sell and replace its inventory approximately 10.45 times during the year.
Receivables turnover reflects how many times a company collects its accounts receivable during a period. Over the past three years, Doximity Inc's receivables turnover has been improving, with values of 4.59 in 2024, 3.84 in 2023, and 4.17 in 2022. This suggests that the company has been more efficient in collecting payments from customers over time.
Payables turnover measures how quickly a company pays its suppliers. Doximity Inc's payables turnover has decreased over the years, with values of 22.49 in 2024, 42.05 in 2023, and 85.93 in 2022. A lower payables turnover ratio may indicate that the company is taking longer to pay its suppliers.
Working capital turnover indicates how efficiently a company is using its working capital to generate revenue. Doximity Inc's working capital turnover has been increasing, with values of 0.62 in 2024, 0.50 in 2023, and 0.43 in 2022. This suggests that the company is generating more revenue per unit of working capital over time.
Overall, Doximity Inc's activity ratios show varying levels of efficiency in managing inventory, collecting receivables, paying payables, and utilizing working capital. The company has made improvements in receivables turnover and working capital turnover, while payables turnover has decreased. The trend in these ratios can provide insights into the company's operational efficiency and effectiveness in managing its resources.
Average number of days
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 34.92 | — |
| Days of sales outstanding (DSO) | days | 79.56 | 95.16 | 87.62 |
| Number of days of payables | days | 16.23 | 8.68 | 4.25 |
Activity ratios provide insights into how efficiently a company manages its operating cycle. Let's analyze Doximity Inc's activity ratios based on the provided data:
1. Days of Inventory on Hand (DOH):
The company had an undefined DOH in 2022 and 2024 but held inventory for approximately 35 days in 2023. This indicates that Doximity Inc is turning over its inventory fairly quickly, which could reduce the risk of obsolescence or excess stock.
2. Days of Sales Outstanding (DSO):
In 2022, Doximity Inc took around 88 days to collect on sales, decreasing to 79.56 days in 2024 and slightly increasing in 2023. A lower DSO is favorable as it signifies faster collection of receivables, improving cash flow and reducing the risk of bad debts.
3. Number of Days of Payables:
The number of days of payables increased from 4.25 days in 2022 to 16.23 days in 2024, indicating the company is taking longer to pay its suppliers. While extending payables can provide liquidity benefits, it may strain supplier relationships if not managed effectively.
Overall, Doximity Inc's activity ratios show improvements in inventory turnover and days of sales outstanding, which suggest efficient management of inventory and receivables. However, the increase in the number of days of payables may require attention to balance cash flow and vendor relationships effectively.
Long-term
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | |
|---|---|---|---|
| Fixed asset turnover | 38.60 | 37.15 | 40.47 |
| Total asset turnover | 0.44 | 0.37 | 0.35 |
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. Doximity Inc has shown a consistent and high fixed asset turnover ratio over the past three years, with values of 38.60, 37.15, and 40.47 for the years ended Mar 31, 2024, Mar 31, 2023, and Mar 31, 2022, respectively. This indicates that the company effectively utilizes its fixed assets to generate sales.
On the other hand, the total asset turnover ratio evaluates how well a company generates sales from all of its assets. Doximity Inc's total asset turnover ratios have also shown improvement over the three-year period, with values of 0.44, 0.37, and 0.35 for the years ended Mar 31, 2024, Mar 31, 2023, and Mar 31, 2022, respectively. This suggests that the company is becoming more efficient in generating revenue from its total assets.
Overall, the trend of increasing fixed asset turnover and total asset turnover ratios for Doximity Inc indicates improving efficiency in generating sales from both fixed and total assets over the three-year period, which is a positive indicator of the company's long-term operational performance and asset utilization.