DigitalOcean Holdings Inc (DOCN)

Days of sales outstanding (DSO)

		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
Receivables turnover		10.77	10.97	10.90	11.16	11.14	11.21	11.39	11.17	10.71	8.92	11.17	10.87	10.82
DSO	days	33.89	33.26	33.48	32.72	32.76	32.57	32.05	32.67	34.09	40.92	32.66	33.58	33.74

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.77
= 33.89

DigitalOcean Holdings Inc's Days Sales Outstanding (DSO) measure indicates the average number of days it takes for the company to collect revenue after making a sale.

Analyzing the trend in DSO over the periods provided, we observe some fluctuations in the metric.

- As of December 31, 2021, the DSO stood at 33.74 days, indicating that on average, it took the company just over a month to collect revenue from its sales.
- By March 31, 2022, the DSO slightly decreased to 33.58 days, showing improved efficiency in the collection process.
- The trend continued positively, reaching a low of 32.05 days by June 30, 2023, suggesting further improvement in the company's collection procedures.
- However, there was a slight uptick in DSO by September 30, 2023, where it increased to 32.57 days.
- The metric remained relatively stable around the low 30s range in the subsequent periods up to December 31, 2024, ending at 33.89 days.

Overall, DigitalOcean Holdings Inc managed to keep its DSO under control, maintaining a relatively stable collection period over the analyzed periods. It is important for the company to continue monitoring and managing its DSO to ensure efficient cash flow and liquidity management.