Doximity Inc (DOCS)

Total asset turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Revenue	US$ in thousands	475,422	419,052	343,548
Total assets	US$ in thousands	1,079,370	1,136,890	991,357
Total asset turnover		0.44	0.37	0.35

March 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $475,422K ÷ $1,079,370K
= 0.44

Total asset turnover measures a company's efficiency in generating revenue from its assets. In the case of Doximity Inc, the total asset turnover ratio has shown a positive trend over the past three years, increasing from 0.35 in March 31, 2022, to 0.37 in March 31, 2023, and further to 0.44 in March 31, 2024. This indicates that the company has been more effective in utilizing its assets to generate sales revenue over time. A higher total asset turnover ratio typically signifies better asset utilization efficiency, which can be attributed to factors such as improved operational efficiency or effective asset management strategies within the company. Overall, the increasing trend in Doximity Inc's total asset turnover ratio suggests that the company has been becoming more efficient in generating sales revenue from its total assets, reflecting positively on its operational performance and asset management practices.