Doximity Inc (DOCS)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | 8.80 | 17.94 | 14.36 | 10.45 | 9.26 | — | 12.43 | — | 7.12 | 10.56 | 7.63 | 5.33 | — | — |
| Receivables turnover | 4.44 | 4.00 | 4.14 | 4.00 | 4.69 | 4.80 | 4.61 | 4.70 | 3.91 | 5.37 | 4.85 | 4.76 | 4.24 | 4.53 | 4.98 | 5.29 | 4.11 | 3.78 | — |
| 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 | — |
| Working capital turnover | 0.61 | 0.61 | 0.63 | 0.64 | 0.62 | 0.64 | 0.61 | 0.51 | 0.50 | 0.51 | 0.53 | 0.48 | 0.43 | 0.41 | 0.38 | 0.35 | 1.93 | 2.18 | — |
Based on the provided data, I will analyze the activity ratios of Doximity Inc as follows:
1. Inventory Turnover: This ratio measures how many times a company's inventory is sold and replaced over a period. Doximity's inventory turnover has shown improvement over the years, with a significant increase from 5.33 in March 2021 to 14.36 in June 2023, indicating a more efficient management of inventory.
2. Receivables Turnover: The receivables turnover ratio shows how efficiently a company collects cash from its customers. Doximity's receivables turnover has been relatively stable, ranging from 3.78 to 5.37, suggesting consistent collection practices.
3. Payables Turnover: This ratio indicates how quickly a company pays its suppliers. Doximity's payables turnover has fluctuated over time but generally remained at a reasonable level, showing variations between 11.60 to 92.04, indicating the company's ability to manage its payables effectively.
4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Doximity's working capital turnover has been relatively steady, ranging from 0.35 to 0.64, indicating a consistent utilization of working capital to support its operations.
Overall, the analysis of Doximity Inc's activity ratios reveals a positive trend in inventory turnover and stable performance in receivables turnover, payables turnover, and working capital turnover, suggesting efficient management of resources and operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | 41.49 | 20.34 | 25.41 | 34.92 | 39.43 | — | 29.36 | — | 51.28 | 34.57 | 47.84 | 68.52 | — | — |
| Days of sales outstanding (DSO) | days | 82.13 | 91.22 | 88.13 | 91.33 | 77.80 | 76.05 | 79.15 | 77.63 | 93.24 | 68.02 | 75.25 | 76.75 | 86.14 | 80.50 | 73.26 | 69.03 | 88.77 | 96.57 | — |
| Number of days of payables | days | 8.86 | 11.06 | 19.45 | 11.84 | 16.23 | 13.25 | 4.91 | 3.97 | 8.68 | 11.35 | 8.22 | 7.45 | 4.25 | 12.47 | 8.69 | 31.48 | 17.73 | 10.94 | — |
The activity ratios of Doximity Inc provide insights into how efficiently the company manages its working capital and operations.
1. Days of Inventory on Hand (DOH) measures how many days, on average, the company holds inventory before selling it. A decreasing trend in DOH indicates efficient inventory management. From March 2021 to December 2023, Doximity Inc significantly reduced its DOH from 68.52 days to 41.49 days, suggesting improved inventory turnover and potentially lower holding costs.
2. Days of Sales Outstanding (DSO) reflects the average number of days it takes for the company to collect revenue after making a sale. A lower DSO signifies faster cash conversion and better credit control. Doximity Inc achieved a decreasing trend in DSO from December 2020 to March 2025, fluctuating between 69.03 days and 82.13 days. This suggests efforts to manage accounts receivable efficiently.
3. Number of Days of Payables indicates the average number of days it takes for the company to pay its suppliers. A longer period indicates better cash flow management and potential to benefit from supplier credit terms. Doximity Inc shows fluctuations in payables days from December 2020 to March 2025, with the lowest being 3.97 days in June 2023, and the highest at 31.48 days in June 2021.
Overall, Doximity Inc appears to be effectively managing its working capital through improved inventory turnover, efficient accounts receivable collection, and optimizing payables. These trends reflect the company's efforts to enhance operational efficiency and maximize cash flow utilization.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 18.28 | 17.53 | — | 15.53 | 14.48 | 15.76 | 35.88 | 32.27 | 31.62 | 27.92 | 23.15 | 19.22 | — |
| Total asset turnover | 0.45 | 0.47 | 0.46 | 0.46 | 0.44 | 0.47 | 0.44 | 0.38 | 0.37 | 0.38 | 0.37 | 0.34 | 0.35 | 0.34 | 0.32 | 0.29 | 0.82 | 0.86 | — |
Doximity Inc's Fixed Asset Turnover ratio has shown a general increasing trend over the years, starting from 19.22 in December 2020 and peaking at 35.88 in March 2022. However, there was a significant drop in June 2022 to 15.76, followed by a slight recovery in the subsequent periods. This ratio indicates the company's efficiency in generating revenue from its fixed assets.
On the other hand, the Total Asset Turnover ratio, which measures how efficiently the company is using its total assets to generate revenue, shows some fluctuations. It was relatively stable around 0.3 in the first half of 2021, then increased gradually to 0.47 by December 2024, with some fluctuations in between. This ratio suggests how effectively Doximity Inc is utilizing its total assets to generate sales.
In general, a higher Fixed Asset Turnover ratio indicates better asset utilization efficiency, while a higher Total Asset Turnover ratio signifies better overall asset management efficiency. Both ratios provide insights into the company's operational effectiveness and can be useful for investors and analysts in evaluating Doximity Inc's long-term activity performance.