Datadog Inc (DDOG)
Solvency ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.06 | 2.13 | 1.76 | 1.83 | 1.88 | 1.94 | 1.96 | 2.01 | 2.08 | 2.13 | 2.17 | 2.18 | 2.26 | 2.29 | 2.29 | 2.27 | 2.32 | 1.97 | 1.94 | 1.95 |
The analysis of Datadog Inc.'s solvency ratios indicates a consistent profile of low leverage and negligible debt levels over the period under review. The Debt-to-assets ratio consistently registers at 0.00 across all reporting dates from June 2020 through March 2025, implying that the company's total assets are financed entirely by shareholders' equity without reliance on debt. Similarly, the Debt-to-capital ratio remains at zero throughout this timeline, further confirming the absence of debt in the capital structure.
The Debt-to-equity ratio also consistently reports at 0.00, reinforcing the conclusion that the company's liabilities are negligible relative to its equity base. This positions Datadog as a company that is entirely equity-financed, with no debt obligations to creditors as of the dates observed.
The Financial Leverage Ratio, which measures the extent to which assets are financed using debt, fluctuates within a narrow range from approximately 1.76 to 2.32 over the period. Early in the period, the ratio hovers around 1.95–2.00, reflecting a modest leverage position, and demonstrates a gradual decline to approximately 1.76–1.94 towards late 2024 and early 2025. The ratio's persistent proximity to 2 indicates that the company maintains a relatively low level of financial leverage, consistent with a conservative capital structure that relies heavily on equity.
In summary, across all analyzed metrics, Datadog Inc. exhibits an exceptionally conservative leverage profile characterized by zero debt ratios and a low financial leverage ratio. This suggests a strong solvency position, with minimal financial risk stemming from debt obligations. The company's capital structure reflects a predominantly equity-based financing strategy, which contributes to its financial stability but might limit its capacity for debt-driven expansion unless strategic shifts occur in the future.
Coverage ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 10.47 | 16.33 | 13.44 | 1.16 | -7.97 | -6.56 | -10.62 | -9.40 | -4.74 | -1.45 | 0.84 | 1.79 | 1.29 | 0.13 | -0.38 | -0.56 | -0.30 | 0.01 | -0.18 | 0.58 |
The interest coverage ratio of Datadog Inc. exhibits considerable volatility over the period analyzed. Starting from a low of approximately 0.58 on June 30, 2020, the ratio fluctuated into negative territory multiple times, reaching as low as -10.62 on September 30, 2023, indicating periods where earnings before interest and taxes (EBIT) were insufficient to cover interest expenses.
In early 2021, the company experienced a brief positive coverage, with ratios improving to around 1.29 on March 31, 2022, and further to approximately 1.79 by June 30, 2022, suggesting a period where earnings began to reliably cover interest obligations. However, there was a subsequent decline into negative ratios, notably hitting -1.45 at the end of 2022, and an even deeper negative of -10.62 by September 2023, reflecting substantial challenges in generating enough operating earnings to meet interest payments.
It is noteworthy that in the most recent periods, particularly as of June 30, 2024, and September 30, 2024, the ratios improved significantly to values of 1.16 and 13.44 respectively. This indicates a return to a more sustainable interest coverage position, with earnings once again surpassing interest expenses. The trend suggests a period of financial distress followed by a significant recovery, positioning the company with a healthier capacity to meet its interest obligations in the near term.
Overall, the data reflects considerable fluctuations in Datadog Inc.'s ability to service interest costs through operational profitability, with recent figures indicating improvement after a prolonged phase of negative or insufficient coverage.