DigitalOcean Holdings Inc (DOCN)

Receivables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Revenue (ttm)	US$ in thousands	780,615	756,564	735,142	712,480	692,884	675,008	650,061	614,129	576,322	532,986	492,299	462,227	428,561
Receivables	US$ in thousands	72,486	68,936	67,435	63,866	62,186	60,237	57,077	54,972	53,833	59,753	44,056	42,527	39,619
Receivables turnover		10.77	10.97	10.90	11.16	11.14	11.21	11.39	11.17	10.71	8.92	11.17	10.87	10.82

December 31, 2024 calculation

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

DigitalOcean Holdings Inc's receivables turnover ratio measures how many times a company collects its accounts receivable during a specific period. A higher turnover ratio indicates that the company is efficient in collecting payments from customers.

Based on the data provided:

- The receivables turnover ratio for DigitalOcean Holdings Inc has been relatively stable and consistent over the period from December 31, 2021, to December 31, 2024.
- The highest receivables turnover ratio was observed on June 30, 2023, at 11.39, indicating that the company converted its accounts receivable into cash 11.39 times during that period.
- The lowest receivables turnover ratio occurred on September 30, 2022, at 8.92, suggesting that the company collected its accounts receivable less efficiently during that quarter.
- Overall, the company's receivables turnover ratio has stayed within a narrow range of around 10.77 to 11.39, reflecting a consistent performance in collecting payments from customers.

In conclusion, the consistent and stable receivables turnover ratio of DigitalOcean Holdings Inc indicates good efficiency in collecting payments from customers over the analyzed period, which is a positive sign for the company's financial health.