Doximity Inc (DOCS)

Payables 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
Cost of revenue (ttm)	US$ in thousands	50,669	51,779	53,115	53,566	53,490	51,578	49,137	44,878	39,787
Payables	US$ in thousands	2,253	1,880	714	582	1,272	1,604	1,106	916	463	1,230	781	2,700
Payables turnover		22.49	27.54	74.39	92.04	42.05	32.16	44.43	48.99	85.93

March 31, 2024 calculation

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

The payables turnover ratio of Doximity Inc has exhibited fluctuating trends over the past few quarters. The company's payables turnover ratio stood at 22.49 for March 31, 2024, down from 27.54 in December 31, 2023. This decrease suggests that Doximity took longer to pay its suppliers in the most recent quarter compared to the previous one.

Looking back further, the payables turnover ratio for Doximity was 74.39 in September 30, 2023, indicating a significant improvement in how quickly the company paid its suppliers compared to March 31, 2024. The ratio then decreased to 42.05 in the subsequent quarter, before returning to a higher level of 92.04 in June 30, 2023.

Throughout the analyzed period, the payables turnover ratio for Doximity Inc has shown variability, with some quarters reflecting more efficient management of payables compared to others. It is important for the company to strike a balance between managing payment timelines effectively to maintain good relationships with suppliers while also optimizing cash flow and working capital efficiency. Further analysis and comparison with industry benchmarks would provide deeper insights into the company's financial performance and operational efficiency related to payables management.