Datadog Inc (DDOG)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,684,280	2,128,360	1,675,100	1,028,780	603,466
Total assets	US$ in thousands	5,785,340	3,936,070	3,004,850	2,380,790	1,890,280
Total asset turnover		0.46	0.54	0.56	0.43	0.32

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,684,280K ÷ $5,785,340K
= 0.46

The total asset turnover ratio for Datadog Inc demonstrates a trend of increasing efficiency in utilizing its assets to generate revenue over the period from December 31, 2020, to December 31, 2024. Specifically, the ratio rose from 0.32 in 2020 to 0.43 in 2021, indicating an improvement in asset utilization. This upward trajectory continued into 2022, reaching a ratio of 0.56, representing a notable increase and suggesting enhanced operational efficiency or revenue growth relative to asset base during this period.

However, in 2023, the ratio experienced a slight decline to 0.54, indicating a marginal reduction in asset efficiency, although it remained substantially higher than the levels seen in 2020 and 2021. This could reflect a stabilization or a slight slowdown in asset utilization relative to revenue generation, or possibly increased asset investments not yet fully translated into proportionate revenue.

The ratio further decreased to 0.46 in 2024, continuing the downward trend observed in 2023. Despite this decline, the ratio remains above the 2020 figure, suggesting that while asset utilization has slightly diminished, it still remains at a relatively higher level compared to earlier years.

Overall, the data depict a period of significant improvement in asset efficiency during the initial years, peaking around 2022, followed by a minor retreat in the subsequent two years. This pattern may be indicative of strategic adjustments, changes in business operations, or shifts in revenue-generating efficiencies.