DigitalOcean Holdings Inc (DOCN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 692,884 | 576,322 | 428,561 |
| Receivables | US$ in thousands | 62,186 | 53,833 | 39,619 |
| Receivables turnover | 11.14 | 10.71 | 10.82 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $692,884K ÷ $62,186K
= 11.14
The receivables turnover for DigitalOcean Holdings Inc has shown a consistent pattern of improvement over the past three years. The ratio increased from 10.82 in 2021 to 10.71 in 2022 and further to 11.14 in 2023. This indicates that the company is able to collect its accounts receivable more efficiently each year.
A higher receivables turnover ratio signifies that DigitalOcean Holdings Inc is able to quickly convert its accounts receivable into cash, which is a positive indicator of the company's liquidity and efficiency in managing its credit sales. This trend suggests that the company has been successful in managing and collecting its outstanding receivables over the years.
Overall, the improving trend in the receivables turnover ratio reflects positively on DigitalOcean Holdings Inc's ability to effectively manage its credit policies and collect payments from customers in a timely manner.
Peer comparison
Dec 31, 2023