Doximity Inc (DOCS)

Cash conversion cycle

		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	—
Cash conversion cycle	days	73.28	80.16	68.68	79.49	61.57	104.29	94.59	99.08	119.48	96.10	67.03	98.66	81.89	119.32	99.14	85.39	139.56	85.63	0.00

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 82.13 – 8.86
= 73.28

Doximity Inc's cash conversion cycle has shown fluctuations over the period from September 30, 2020, to March 31, 2025. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From the data provided, we observe that Doximity Inc's cash conversion cycle ranged from a low of 0.00 days on September 30, 2020, which indicates the company was able to quickly convert its resources into cash, to a high of 139.56 days on March 31, 2021, signaling a longer period for the company to realize cash from its operations.

The trend in the cash conversion cycle shows some variation, with peaks and troughs occurring periodically. For example, there are instances of improvement, such as the decrease in the cycle to 61.57 days on March 31, 2024, indicating a more efficient management of working capital during that period.

Overall, Doximity Inc's cash conversion cycle indicates fluctuations in the efficiency of its working capital management. A lower cash conversion cycle suggests the company is more efficient in generating cash from its operations, while a higher cycle indicates a longer period to convert investments into cash. It is essential for the company to closely monitor and manage its cash conversion cycle to optimize its working capital efficiency and financial performance.