Doximity Inc (DOCS)

Quick ratio

		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
Cash	US$ in thousands	96,785	123,089	108,403	306,729	158,027	136,454	73,674	110,092	112,809	85,079	79,521	594,321
Short-term investments	US$ in thousands	666,115	540,123	594,875	511,064	651,220	551,092	607,055	654,402	595,253	680,499	663,140	132,133
Receivables	US$ in thousands	103,632	99,184	99,017	94,422	109,247	77,662	81,036	77,921	82,473	71,623	57,581	47,290
Total current liabilities	US$ in thousands	147,250	104,762	123,181	132,694	139,507	105,884	118,143	120,753	111,282	91,713	95,624	100,182
Quick ratio		5.88	7.28	6.51	6.87	6.58	7.23	6.45	6.98	7.10	9.13	8.37	7.72

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio greater than 1 indicates that a company has enough liquid assets to cover its current liabilities.

Based on the data provided for Doximity Inc, the quick ratio has been consistently high over the past few quarters, ranging from 5.88 to 9.13. This indicates that the company has a strong ability to meet its short-term liabilities using its quick assets, such as cash, cash equivalents, and marketable securities.

The trend shows a relatively stable quick ratio over time, with some fluctuations but overall maintaining a level above 5, which is considered healthy. The company's quick ratio exceeding 1 means that it has ample liquid assets to cover its current liabilities, suggesting a strong financial position.

Overall, Doximity Inc's quick ratio indicates a robust liquidity position and ability to meet its short-term obligations, which is a positive signal for investors and creditors.