DigitalOcean Holdings Inc (DOCN)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Revenue	US$ in thousands	780,615	692,884	576,322	428,561
Receivables	US$ in thousands	72,486	62,186	53,833	39,619
Receivables turnover		10.77	11.14	10.71	10.82

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $780,615K ÷ $72,486K
= 10.77

The receivables turnover ratio measures the efficiency with which DigitalOcean Holdings Inc collects outstanding receivables during a specific period. A higher ratio indicates a quicker collection process.

Based on the provided data:
- In December 31, 2021, the receivables turnover ratio was 10.82, suggesting that, on average, the company collected its outstanding receivables approximately 10.82 times during that period.
- In December 31, 2022, the ratio slightly decreased to 10.71, indicating a slightly slower collection rate compared to the previous year.
- By December 31, 2023, the receivables turnover ratio improved to 11.14, signifying a more efficient collection process.
- However, the ratio decreased again to 10.77 by December 31, 2024, showing a slight slowdown in the collection of receivables compared to the prior year.

Overall, DigitalOcean Holdings Inc has generally maintained a relatively stable and efficient receivables turnover ratio over the years, with minor fluctuations observed. It is essential for the company to monitor and manage its accounts receivable effectively to ensure timely collection and optimal cash flow management.