Doximity Inc (DOCS)

Quick ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Cash	US$ in thousands	96,785	158,027	112,809
Short-term investments	US$ in thousands	666,115	651,220	595,253
Receivables	US$ in thousands	103,632	109,247	82,473
Total current liabilities	US$ in thousands	147,250	139,507	111,282
Quick ratio		5.88	6.58	7.10

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($96,785K + $666,115K + $103,632K) ÷ $147,250K
= 5.88

The quick ratio of Doximity Inc has shown a declining trend over the past three years. As of March 31, 2024, the quick ratio stands at 5.88, down from 6.58 in 2023 and 7.10 in 2022. This indicates that the company's ability to cover its short-term liabilities with its most liquid assets has weakened over time. Although a quick ratio above 1 generally suggests good liquidity, a decreasing trend could raise concerns about the company's short-term financial health and its ability to meet its immediate obligations. It is essential for Doximity Inc to carefully monitor and manage its liquidity position to ensure continued financial stability.