DigitalOcean Holdings Inc (DOCN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 692,884 | 576,322 | 428,561 |
| Property, plant and equipment | US$ in thousands | 305,444 | 273,170 | 249,643 |
| Fixed asset turnover | 2.27 | 2.11 | 1.72 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $692,884K ÷ $305,444K
= 2.27
The fixed asset turnover ratio for DigitalOcean Holdings Inc has shown a consistent improvement over the past three years, increasing from 1.72 in 2021 to 2.11 in 2022 and further to 2.27 in 2023.
This indicates that the company has been able to generate more revenue from its fixed assets each year. A higher fixed asset turnover ratio signifies increased efficiency in the utilization of fixed assets to generate sales.
The improvement in the fixed asset turnover ratio suggests that DigitalOcean Holdings Inc has been effectively utilizing its fixed assets to drive revenue growth and may indicate improved operational efficiency and asset utilization within the company. This trend is generally viewed positively by investors and stakeholders as it reflects the company's ability to generate more revenue from its existing fixed asset base.
Peer comparison
Dec 31, 2023