Doximity Inc (DOCS)

Receivables 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
Revenue (ttm)	US$ in thousands	475,422	468,331	448,309	436,882	419,052	401,739	384,353	361,518	343,548
Receivables	US$ in thousands	103,632	99,184	99,017	94,422	109,247	77,662	81,036	77,921	82,473	71,623	57,581	47,290
Receivables turnover		4.59	4.72	4.53	4.63	3.84	5.17	4.74	4.64	4.17

March 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $475,422K ÷ $103,632K
= 4.59

The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher turnover ratio indicates that the company is collecting its accounts receivable more quickly.

Analyzing the receivables turnover ratio for Doximity Inc over the past several quarters, we can see that there has been some fluctuation in the ratio. The ratio has ranged from 3.84 to 5.17, with the most recent quarter showing a ratio of 4.59.

On average, Doximity Inc has maintained a relatively stable receivables turnover ratio around 4.5 to 4.7, indicating that the company is generally efficient in collecting payments from its customers. However, the fluctuation in the ratio over the quarters may suggest some variability in the company's collection processes or customer payment behavior.

Overall, the trend in Doximity Inc's receivables turnover ratio suggests that the company is effectively managing its accounts receivable and collecting payments in a timely manner. Further analysis of the underlying reasons for the fluctuations in the ratio could provide insights into potential areas for improvement or optimization in the company's receivables management practices.