DocuSign Inc (DOCU)

Payables turnover

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cost of revenue	US$ in thousands	2,213,050	2,210,150	2,144,070	1,805,600	1,381,000
Payables	US$ in thousands	30,697	19,029	24,393	52,804	37,367
Payables turnover		72.09	116.15	87.90	34.19	36.96

January 31, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,213,050K ÷ $30,697K
= 72.09

DocuSign Inc's payables turnover has exhibited fluctuations over the years. The ratio was at 36.96 in January 31, 2021, indicating that the company took approximately 36.96 days to pay off its accounts payable on average during that period.

Subsequently, the payables turnover decreased to 34.19 by January 31, 2022, suggesting a slight slowdown in the rate at which DocuSign was managing its accounts payable.

The payables turnover ratio then experienced a significant increase, rising to 87.90 by January 31, 2023, and further climbed to 116.15 by January 31, 2024, demonstrating a marked improvement in the company's efficiency in settling its accounts payable.

However, in the following year, on January 31, 2025, the payables turnover ratio dropped to 72.09, indicating that DocuSign took longer to pay off its accounts payable compared to the previous year.

Overall, the trend in payables turnover for DocuSign Inc shows variability, with periods of improvement followed by some fluctuations. It is essential for the company to maintain an optimal balance in managing its payables effectively to sustain its financial health and operational efficiency.