Doximity Inc (DOCS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 6.97 | 8.74 | 7.24 | 6.69 | 6.20 | 8.03 | 7.00 | 7.46 | 6.99 | 8.49 | 7.18 | 7.24 | 8.12 | 9.36 | 8.68 | 7.89 | 2.05 | 1.97 | — |
| Quick ratio | 6.68 | 8.48 | 7.03 | 6.46 | 5.87 | 7.71 | 6.71 | 7.28 | 6.80 | 8.27 | 7.02 | 7.06 | 7.90 | 9.11 | 8.35 | 7.71 | 1.89 | 1.82 | — |
| 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 | — |
From the provided data, it is evident that Doximity Inc's liquidity ratios have shown a generally positive trend over the years. Let's break down the analysis of the liquidity ratios:
1. Current Ratio: The current ratio measures the company's ability to cover its short-term obligations with its current assets. Doximity Inc's current ratio has seen a consistent increase from 1.97 in December 2020 to 6.97 in March 2025. This indicates that the company has improved its ability to meet short-term liabilities over the years.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Similar to the current ratio, Doximity Inc's quick ratio has shown an upward trend, from 1.82 in December 2020 to 6.68 in March 2025. This indicates a strong ability to cover short-term obligations without relying on the sale of inventory.
3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, measuring the company's ability to cover short-term liabilities with its cash and cash equivalents. Doximity Inc's cash ratio has also shown an increasing trend, from 1.25 in December 2020 to 5.86 in March 2025. This demonstrates the company's strong position to meet immediate obligations with its liquid assets.
In conclusion, based on the analysis of Doximity Inc's liquidity ratios, the company has been effectively managing its liquidity position and improving its ability to meet short-term obligations over the years. This positive trend indicates a strong financial health and liquidity position for Doximity Inc.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Doximity Inc has fluctuated over the years, indicating changes in the company's efficiency in managing its working capital. The cycle represents the time it takes for the company to convert its investments in inventory and accounts receivable into cash flows from sales.
From September 30, 2020, to March 31, 2021, there was a significant increase in the cash conversion cycle, reaching its peak at 139.56 days, suggesting a longer period for the company to convert its resources into cash. This trend reversed by December 31, 2021, when the cycle decreased to 119.32 days, showing improved efficiency in managing working capital.
Subsequently, the company continued to show fluctuations in its cash conversion cycle, with periods of both improvement and deterioration in efficiency. For instance, the cycle decreased to 67.03 days by September 30, 2022, indicating better management of working capital. However, it then increased to 119.48 days by March 31, 2023, before decreasing again by the end of December 2023 to 104.29 days.
Overall, the company's cash conversion cycle demonstrates variability, with periods of both prolonged and shortened cycles. It is essential for Doximity Inc to closely monitor and manage its working capital to ensure efficient operations and optimize cash flows.