DigitalOcean Holdings Inc (DOCN)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	712,480	692,884	675,008	650,061	614,129	576,322	532,986	492,299	462,227	428,561
Property, plant and equipment	US$ in thousands	322,052	305,444	284,806	270,707	277,957	273,170	270,985	268,418	259,385	249,643	241,083	243,050	242,722
Fixed asset turnover		2.21	2.27	2.37	2.40	2.21	2.11	1.97	1.83	1.78	1.72

March 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $712,480K ÷ $322,052K
= 2.21

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. It is calculated by dividing net sales by average fixed assets.

In the case of DigitalOcean Holdings Inc, the fixed asset turnover has been relatively stable over the past few quarters, ranging from 1.72 to 2.40. A higher fixed asset turnover indicates that the company is able to generate more revenue from its fixed assets, which is generally seen as a positive indicator of operational efficiency.

The trend for DigitalOcean Holdings Inc's fixed asset turnover shows a slight increase over the period, suggesting an improvement in the company's ability to utilize its fixed assets to generate revenue. However, it is important to note that fixed asset turnover should be analyzed in conjunction with other financial ratios and factors to get a comprehensive understanding of the company's financial performance and operational efficiency.