DigitalOcean Holdings Inc (DOCN)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cost of revenue	US$ in thousands	283,967	211,927	170,595
Inventory	US$ in thousands	—	—	—
Inventory turnover		—	—	—

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $283,967K ÷ $—K
= —

To calculate the inventory turnover ratio for DigitalOcean Holdings Inc, we would need access to the cost of goods sold (COGS) and the average inventory figures for the given years. Unfortunately, without the specific values for these variables provided in the table, we are unable to compute the inventory turnover ratio accurately.

Inventory turnover ratio is a key financial metric used to evaluate how efficiently a company manages its inventory by measuring how many times a company sells and replaces its inventory during a specific period. A higher inventory turnover ratio typically indicates that a company is selling its inventory quickly and efficiently. In contrast, a lower ratio may suggest overstocking or slow-moving inventory, potentially leading to higher carrying costs and reduced liquidity.

For a comprehensive analysis of DigitalOcean Holdings Inc's inventory turnover, it is essential to compute the ratio using the COGS and average inventory data. This data would provide valuable insights into the company's inventory management efficiency, competitiveness, and overall financial health.