Doximity Inc (DOCS)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | ||
|---|---|---|---|---|
| Receivables turnover | 4.59 | 3.84 | 4.17 | |
| DSO | days | 79.56 | 95.16 | 87.62 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.59
= 79.56
To analyze Doximity Inc's Days of Sales Outstanding (DSO) over the past three years, we observe a decreasing trend from 95.16 days in 2023 to 87.62 days in 2022, further down to 79.56 days in 2024.
A decreasing DSO indicates that the company is collecting its accounts receivable more efficiently, converting credit sales into cash at a faster rate. This improvement could be due to more effective credit control measures, better billing and collection processes, or high customer creditworthiness.
Overall, the declining trend in DSO reflects positively on Doximity Inc's liquidity position and operational efficiency, as it indicates the company's ability to collect its outstanding receivables in a timelier manner.
Peer comparison
Mar 31, 2024