Doximity Inc (DOCS)
Current ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | ||
|---|---|---|---|---|
| Total current assets | US$ in thousands | 912,941 | 975,453 | 904,137 |
| Total current liabilities | US$ in thousands | 147,250 | 139,507 | 111,282 |
| Current ratio | 6.20 | 6.99 | 8.12 |
March 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $912,941K ÷ $147,250K
= 6.20
The current ratio of Doximity Inc has shown a decreasing trend over the past three fiscal years, dropping from 8.12 as of March 31, 2022, to 6.99 as of March 31, 2023, and further declining to 6.20 as of March 31, 2024. This indicates that the company's liquidity position has weakened over time, as its current assets relative to current liabilities have decreased. While a higher current ratio is generally preferred as it signifies a stronger ability to cover short-term obligations, Doximity's declining trend may raise concerns about its ability to meet its current obligations in the near term. Further analysis and monitoring of the company's liquidity management are recommended to assess the potential impact on its financial health.
Peer comparison
Mar 31, 2024