Doximity Inc (DOCS)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Cost of revenue	US$ in thousands	50,669	53,490	39,787
Payables	US$ in thousands	2,253	1,272	463
Payables turnover		22.49	42.05	85.93

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $50,669K ÷ $2,253K
= 22.49

Doximity Inc's payables turnover ratio has exhibited a decreasing trend over the past three years, dropping from 85.93 in March 2022 to 42.05 in March 2023, and further declining to 22.49 in March 2024. This indicates that the company is taking longer to pay off its accounts payable obligations relative to its cost of goods sold. A lower payables turnover ratio may suggest inefficiencies in managing vendor payments or changes in supplier credit terms. It is important for Doximity Inc to closely monitor and potentially improve its payables turnover to maintain healthy vendor relationships and optimize working capital management.