DigitalOcean Holdings Inc (DOCN)

Days of sales outstanding (DSO)

		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
Receivables turnover		11.16	11.14	11.21	11.39	11.17	10.71	8.92	11.17	10.87	10.82
DSO	days	32.72	32.76	32.57	32.05	32.67	34.09	40.92	32.66	33.58	33.74

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.16
= 32.72

DigitalOcean Holdings Inc's Days Sales Outstanding (DSO) measures how long it takes the company to collect revenue from its sales. A lower DSO is generally favorable as it indicates faster collection of cash from customers.

Analyzing the trend in DigitalOcean's DSO over the past few quarters, we can see that it has been relatively stable, ranging between 32 to 34 days. This consistency suggests that the company has been efficient in managing its accounts receivable and collecting payments from customers within a consistent timeframe.

The DSO of DigitalOcean Holdings Inc on March 31, 2024, was 32.72 days, slightly lower than the previous quarter. This indicates that the company was able to collect its sales revenue a bit faster in the latest period compared to the end of December 2023.

Overall, the DSO ratio for DigitalOcean over the analyzed periods suggests that the company has been effective in managing its accounts receivable and maintaining consistent collection practices, which is a positive indicator of its financial health and operational efficiency.