DocuSign Inc (DOCU)

Short-term

Turnover ratios

DocuSign Inc's activity ratios provide insights into how efficiently the company is managing its resources.

1. Inventory Turnover: DocuSign does not provide information on its inventory turnover, which indicates that the company may have a lean inventory management strategy or operates in a service-based industry where inventory is not a significant factor.

2. Receivables Turnover: The company's receivables turnover has been increasing over the years, from 4.30 in January 31, 2021, to 6.93 in January 31, 2025. This indicates that DocuSign is collecting its accounts receivable more quickly, which is a positive sign of efficient credit management.

3. Payables Turnover: DocuSign's payables turnover fluctuated over the years, reaching a peak of 116.15 in January 31, 2024. A high payables turnover ratio suggests that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships but also provide a source of short-term financing.

4. Working Capital Turnover: DocuSign's working capital turnover is only available for January 31, 2021, and is reported at 20.10. This ratio measures how effectively the company is using its working capital to generate revenue. However, the lack of information for subsequent years makes it difficult to assess the trend and make meaningful comparisons.

In summary, DocuSign Inc has shown improvement in its receivables turnover, indicating efficient collections, but lacks visibility into its inventory turnover and working capital turnover. The fluctuating payables turnover may signal varying payment practices. A comprehensive analysis of all activity ratios together would provide a more holistic view of the company's operational efficiency.

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Average number of days

DocuSign Inc's activity ratios provide insight into how efficiently the company manages its resources and operations.

1. Days of Inventory on Hand (DOH): The data shows that DocuSign does not have specific information available for its inventory management over the given periods. This may indicate that the company operates with a low level of inventory or that inventory data is not publicly disclosed.

2. Days of Sales Outstanding (DSO): The DSO ratio measures how quickly the company collects its accounts receivable. DocuSign's DSO has decreased from 84.94 days in January 2021 to 52.67 days in January 2025. This trend indicates that the company has been more efficient in collecting payments from customers over the years.

3. Number of Days of Payables: This ratio reflects how long the company takes to pay its suppliers. DocuSign's payables days have fluctuated, from 9.88 days in January 2021 to 5.06 days in January 2025. The decreasing trend may suggest that DocuSign is paying its suppliers more quickly, which could impact its cash flow management.

Overall, based on the activity ratios provided, DocuSign Inc appears to have improved its efficiency in managing accounts receivable collection over time, while also potentially decreasing the time it takes to pay its suppliers. Efficient management of these activities can have a positive impact on the company's cash flow and overall financial health.

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Long-term

DocuSign Inc's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, provide insight into the company's efficiency in utilizing its fixed and total assets to generate sales.

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently the company generates revenue from its investments in fixed assets.
- DocuSign Inc's Fixed Asset Turnover has shown an increasing trend over the years, from 8.42 in January 31, 2021, to 11.24 in January 31, 2024, before slightly decreasing to 9.94 in January 31, 2025.
- A higher Fixed Asset Turnover ratio indicates that the company is effectively using its fixed assets to generate sales, which generally reflects positively on the company's operational efficiency.

2. Total Asset Turnover:
- The Total Asset Turnover ratio evaluates the company's ability to generate sales relative to its total assets.
- DocuSign Inc's Total Asset Turnover has fluctuated over the years, with a slight increase from 0.60 in January 31, 2021, to 0.93 in January 31, 2024, followed by a decrease to 0.74 in January 31, 2025.
- A higher Total Asset Turnover ratio signifies that the company is efficient in utilizing its total assets to drive sales, which is a crucial indicator of the company's overall operating efficiency and asset utilization.

In summary, DocuSign Inc has shown a decent level of efficiency in generating sales from both its fixed assets and total assets, as indicated by the improving trends in its Fixed Asset Turnover and relatively consistent performance in its Total Asset Turnover ratios over the analyzed period.