DigitalOcean Holdings Inc (DOCN)

Days of inventory on hand (DOH)

		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
Inventory turnover		—	16.17	—	—	—	—	—	—	—	8.53	—	—	—
DOH	days	—	22.57	—	—	—	—	—	—	—	42.77	—	—	—

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

Days of Inventory on Hand (DOH) is a financial ratio that indicates how many days, on average, a company holds onto its inventory before selling it. A lower DOH ratio typically suggests efficient inventory management, while a higher ratio may indicate slower-moving inventory or potential inventory obsolescence.

In the case of DigitalOcean Holdings Inc, the available data for DOH shows fluctuations over the periods provided. As of September 30, 2022, the company had 42.77 days of inventory on hand. This is a relatively high figure, indicating that DigitalOcean may have been holding onto its inventory for an extended period before converting it into sales during that particular quarter.

Subsequently, the DOH decreased significantly to 22.57 days as of September 30, 2024. This reduction suggests that DigitalOcean may have improved its inventory turnover efficiency, meaning that it took less time to sell its inventory and convert it into revenue by the end of the third quarter of 2024.

Overall, the trend in DOH for DigitalOcean Holdings Inc indicates some variability in inventory management efficiency over the reported periods. Further analysis and comparison with industry standards would be beneficial to evaluate the company's inventory management practices comprehensively.