DocuSign Inc (DOCU)

Receivables turnover

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Revenue	US$ in thousands	2,976,740	2,755,040	2,509,530	2,100,770	1,390,400
Receivables	US$ in thousands	429,582	439,299	516,914	440,950	323,570
Receivables turnover		6.93	6.27	4.85	4.76	4.30

January 31, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,976,740K ÷ $429,582K
= 6.93

The receivables turnover for DocuSign Inc has shown a consistent upward trend over the past five years, increasing from 4.30 in January 31, 2021, to 6.93 in January 31, 2025. This indicates that the company is more efficiently collecting payments from its customers within a shorter period on average.

A higher receivables turnover ratio is generally favorable as it suggests that the company is able to convert its accounts receivable into cash quickly. This could be a reflection of effective credit policies, strong customer relationships, or efficient collection processes within the organization.

The significant improvement in the receivables turnover ratio over the five-year period reflects positively on DocuSign's liquidity and financial management. It indicates that the company is effectively managing its accounts receivable and optimizing its cash flow, which could contribute to its overall financial health and operational efficiency.