Doximity Inc (DOCS)

Fixed asset 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
Revenue (ttm)	US$ in thousands	475,422	468,331	448,309	436,882	419,052	401,739	384,353	361,518	343,548
Property, plant and equipment	US$ in thousands	12,318	11,839	11,780	11,639	11,279	11,519	11,647	11,381	8,488	8,221	8,004	7,654
Fixed asset turnover		38.60	39.56	38.06	37.54	37.15	34.88	33.00	31.77	40.47

March 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $475,422K ÷ $12,318K
= 38.60

Doximity Inc's fixed asset turnover ratio has been showing a consistent upward trend from December 2021 to March 2024, indicating an improvement in the company's efficiency in generating sales revenue from its fixed assets. The ratio increased from 34.88 in December 2022 to 38.60 in March 2024, reaching its highest point at the end of the period.

A high fixed asset turnover ratio typically suggests that the company is effectively utilizing its fixed assets to generate revenue. In Doximity Inc's case, the increasing trend indicates that the company has been able to generate more sales relative to its investment in fixed assets over the period under review.

Overall, the company's improving fixed asset turnover ratio reflects positively on its operational efficiency and suggests that Doximity Inc is efficiently managing and utilizing its fixed assets to generate revenue.