Doximity Inc (DOCS)

Payables turnover

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Cost of revenue (ttm) US$ in thousands 55,874 53,974 51,983 51,066 50,669 51,779 53,115 53,566 53,490 51,578 49,137 44,878 39,787 36,015 32,802 31,307 31,196 27,484 23,392
Payables US$ in thousands 1,356 1,636 2,770 1,656 2,253 1,880 714 582 1,272 1,604 1,106 916 463 1,230 781 2,700 1,515 824 —
Payables turnover 41.21 32.99 18.77 30.84 22.49 27.54 74.39 92.04 42.05 32.16 44.43 48.99 85.93 29.28 42.00 11.60 20.59 33.35 —

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $55,874K ÷ $1,356K
= 41.21

The payables turnover ratio is a financial metric that measures how efficiently a company pays its suppliers. It indicates the number of times a company pays off its accounts payable within a specific period, usually a year. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which can indicate good liquidity management.

Analyzing the payables turnover ratio of Doximity Inc from September 2020 to March 2025, we observe fluctuations in the ratio over time. In September 2020, the ratio was not available. From there, it increased sharply to 33.35 by December 2020, indicating that Doximity was paying its payables approximately 33 times during that year. However, it decreased to 11.60 by June 2021, suggesting a decrease in the frequency of paying its suppliers.

The ratio then increased again to 85.93 by March 2022, signaling a significant improvement in payables turnover efficiency. Subsequently, it fluctuated between 11.60 and 92.04 until December 2024, displaying varying levels of efficiency in managing payables.

Overall, Doximity's payables turnover ratio showed fluctuations but generally remained within a reasonable range, indicating that the company managed its payables relatively well during the period under review. It is essential for stakeholders to monitor this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's liquidity and operational efficiency.