Doximity Inc (DOCS)

Working capital turnover

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
Revenue (ttm) US$ in thousands 570,399 550,168 516,849 493,629 475,422 468,331 448,309 436,882 419,052 401,739 384,353 361,518 343,548 316,582 277,415 243,178 206,897 176,564 150,281
Total current assets US$ in thousands 1,088,620 1,012,700 957,712 904,766 912,941 840,899 862,820 989,656 975,453 898,519 847,917 874,143 904,137 858,378 829,608 790,597 209,401 164,152 —
Total current liabilities US$ in thousands 156,257 115,881 132,283 135,277 147,250 104,762 123,181 132,694 139,507 105,884 118,143 120,753 111,282 91,713 95,624 100,182 102,042 83,255 —
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 —

March 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $570,399K ÷ ($1,088,620K – $156,257K)
= 0.61

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio typically indicates better efficiency in managing working capital.

Analysis of Doximity Inc's working capital turnover ratio shows varying levels over the period indicated in the data provided. The trend indicates a general decrease in efficiency until March 2023, followed by an improvement trend.

- As of December 31, 2020, the ratio was 2.18, showing a strong efficiency in utilizing working capital to generate sales.
- However, the ratio dropped significantly by June 30, 2021, to 0.35, indicating a decrease in efficiency in managing working capital.
- Over the next few quarters, the ratio gradually increased, reaching 0.61 by March 31, 2025.
- The highest level recorded during the period was 0.64, seen multiple times between December 31, 2023, and June 30, 2024.

Overall, Doximity Inc's working capital turnover ratio has shown fluctuations but seems to have stabilized around 0.60 in recent quarters. Further analysis and comparison with industry benchmarks could provide more insights into the company's efficiency in managing working capital.