Doximity Inc (DOCS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	209,614	165,270	184,248	111,442	96,785	123,089	108,403	306,729	158,027	136,454	73,674	110,092	112,809	85,079	79,521	594,321	66,393	69,975	—
Short-term investments	US$ in thousands	706,050	679,670	621,310	639,046	666,115	587,149	621,451	566,444	682,972	664,511	676,317	666,162	685,304	680,499	663,140	132,133	76,141	34,491	—
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	—
Cash ratio		5.86	7.29	6.09	5.55	5.18	6.78	5.93	6.58	6.03	7.56	6.35	6.43	7.17	8.35	7.77	7.25	1.40	1.25	—

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($209,614K + $706,050K) ÷ $156,257K
= 5.86

The cash ratio of Doximity Inc has shown a fluctuating trend over the reported periods. The cash ratio indicates the proportion of a company's current assets held in cash or cash equivalents relative to its current liabilities. A higher cash ratio is generally seen as favorable as it suggests a company has sufficient liquid assets to cover its short-term obligations.

From December 31, 2020, to March 31, 2025, Doximity Inc's cash ratio ranged from 1.25 to 8.35. The cash ratio notably spiked in June 30, 2021, reaching 7.25, and continued to increase in the subsequent quarters until December 31, 2021, where it peaked at 8.35. This demonstrates the company held a significant amount of cash relative to its current liabilities during this period.

However, from March 31, 2022, to March 31, 2025, the cash ratio began to decline gradually, indicating a reduction in the proportion of cash and cash equivalents relative to current liabilities. The lowest cash ratio was observed on March 31, 2025, at 5.18, suggesting a decrease in the company's liquidity position compared to previous periods.

Overall, the fluctuation in Doximity Inc's cash ratio reflects changes in its cash and cash equivalents holdings and current liabilities over the reporting periods, indicating varying levels of liquidity and potential changes in the company's ability to meet its short-term obligations.