Datadog Inc (DDOG)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	5,785,340	3,936,070	3,004,850	2,380,790	1,890,280
Total stockholders’ equity	US$ in thousands	2,714,360	2,025,350	1,410,500	1,041,200	957,432
Financial leverage ratio		2.13	1.94	2.13	2.29	1.97

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,785,340K ÷ $2,714,360K
= 2.13

The financial leverage ratio of Datadog Inc exhibits notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio was recorded at 1.97, indicating that the company's total assets were financed approximately 1.97 times with debt relative to equity. This level increased significantly in 2021, reaching 2.29, which suggests an increased reliance on borrowed funds to finance its asset base during that year.

By the end of 2022, the ratio declined to 2.13, illustrating a reduction in leverage compared to the previous year, although it remained above the 2020 level. The ratio further decreased in 2023 to 1.94, nearing the lower end observed in 2020, implying a slight deleveraging during that year. Interestingly, the ratio increased again in 2024 to 2.13, aligning with the 2022 figure and indicating a modest return to higher leverage levels.

Overall, the trend displays some volatility, with an initial increase in leverage from 2020 through 2021, followed by a reduction in 2022 and 2023, and a slight resurgence in 2024. This pattern reflects shifts in the company's financing strategy and capital structure over the analyzed period. The data suggests that Datadog Inc has maintained a relatively moderate level of leverage, with fluctuations indicating adjustments in its capital structure rather than significant long-term shifts.