Doximity Inc (DOCS)

Working capital turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Revenue	US$ in thousands	475,422	419,052	343,548
Total current assets	US$ in thousands	912,941	975,453	904,137
Total current liabilities	US$ in thousands	147,250	139,507	111,282
Working capital turnover		0.62	0.50	0.43

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $475,422K ÷ ($912,941K – $147,250K)
= 0.62

Working capital turnover measures how efficiently a company manages its working capital to generate sales. Doximity Inc's working capital turnover has been improving over the last three years, increasing from 0.43 in 2022 to 0.62 in 2024. This indicates that Doximity is utilizing its working capital more effectively to generate revenue. A higher turnover ratio suggests that the company is efficiently using its current assets and liabilities to support its operations and sales activities. This can be a positive sign of improved liquidity and operational efficiency within the company. However, it is important to compare this ratio with industry benchmarks to gain a better understanding of Doximity's performance relative to its peers.