Doximity Inc (DOCS)

Short-term

Turnover ratios

Activity ratios are used to assess how effectively a company manages its assets and liabilities to generate revenue.

1. Inventory turnover:
- Doximity Inc's inventory turnover has fluctuated over the periods provided, ranging from 8.80 to 17.94.
- A higher inventory turnover indicates that the company is efficiently managing its inventory levels and selling products quickly.
- While the trend in the inventory turnover is not clear due to missing data points, a higher turnover ratio is generally favorable.

2. Receivables turnover:
- Doximity Inc's receivables turnover has ranged from 3.84 to 5.17 over the periods provided.
- This ratio indicates how quickly the company collects outstanding payments from customers.
- A higher turnover ratio suggests that the company is efficient in collecting receivables, which is positive for cash flow and liquidity.

3. Payables turnover:
- The payables turnover for Doximity Inc has varied significantly, from 22.49 to 92.04.
- This ratio reflects how quickly the company pays its suppliers.
- A higher payables turnover implies that the company is managing its trade payables efficiently, but excessively high turnover may indicate possible liquidity issues or strained vendor relationships.

4. Working capital turnover:
- Doximity Inc's working capital turnover has ranged from 0.43 to 0.64 over the periods provided.
- This ratio measures how efficiently the company utilizes its working capital to generate sales.
- A higher turnover ratio indicates that the company is effectively using its resources to generate revenue, which is favorable for profitability and working capital management.

Overall, Doximity Inc's activity ratios suggest varying levels of efficiency in managing its assets and liabilities to drive revenue generation. Monitoring these ratios over time can provide insights into the company's operational performance and financial health.

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Average number of days

Activity ratios provide insights into how efficiently a company is managing its operations and resources. Let's analyze Doximity Inc's activity ratios based on the provided data:

1. Days of Inventory on Hand (DOH):
- The company's inventory turnover has fluctuated over the periods, with a peak of 41.49 days in Mar 31, 2024, indicating that inventory is taking longer to sell compared to previous periods.
- A lower DOH is generally preferred as it signifies faster inventory turnover and better liquidity.

2. Days of Sales Outstanding (DSO):
- Doximity Inc's DSO has varied throughout the periods, reaching a high of 95.16 days in Mar 31, 2023, and a low of 70.56 days in Dec 31, 2023.
- A higher DSO suggests that the company is taking longer to collect payments from its customers, which may impact cash flow and working capital management.

3. Number of Days of Payables:
- The number of days of payables has shown fluctuations, ranging from 3.97 days in Jun 30, 2023, to 16.23 days in Mar 31, 2024.
- A lower number of days of payables indicates that the company is paying its suppliers more quickly, potentially impacting cash flow and liquidity.

Overall, Doximity Inc's activity ratios suggest a need for closer monitoring and potential improvements in inventory management, accounts receivables collection, and payables management to enhance operational efficiency and financial performance.

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Long-term

Doximity Inc's long-term activity ratios provide insight into how effectively the company is utilizing its assets to generate sales over the long term. The fixed asset turnover ratio, which measures the company's ability to generate sales from its investment in fixed assets, has shown a consistent trend of improvement over the past few quarters, with values ranging from 31.77 to 40.47. This indicates that the company is becoming more efficient in utilizing its long-term assets to generate revenue.

On the other hand, the total asset turnover ratio, which measures how efficiently the company is generating revenue from all its assets, has fluctuated over the same period, ranging from 0.34 to 0.47. Despite some variability, the overall trend seems to show some stability in the company's ability to generate sales relative to its total asset base.

Overall, the improvement in the fixed asset turnover ratio suggests that Doximity Inc is increasingly efficient in generating sales from its fixed assets, while the total asset turnover ratio indicates a relatively consistent performance in generating revenue from all its assets over the long term.