DigitalOcean Holdings Inc (DOCN)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Revenue	US$ in thousands	692,884	576,322	428,561
Total assets	US$ in thousands	1,460,970	1,815,630	2,101,000
Total asset turnover		0.47	0.32	0.20

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $692,884K ÷ $1,460,970K
= 0.47

The total asset turnover ratio measures a company's ability to generate revenue from its total assets. A higher ratio indicates that the company is more efficient in utilizing its assets to generate sales.

For DigitalOcean Holdings Inc, the total asset turnover has shown a positive trend, increasing from 0.20 in 2021 to 0.32 in 2022, and further improving to 0.47 in 2023. This suggests that the company has been more effective in generating revenue from its assets over the years.

A total asset turnover ratio of 0.47 in 2023 implies that for every dollar of total assets the company had, it generated $0.47 in sales revenue during that year. This indicates an improvement in asset utilization efficiency, which could be a sign of operational efficiency and effective management of assets to drive revenue growth.

Overall, the increasing trend in the total asset turnover ratio for DigitalOcean Holdings Inc reflects a positive development in the company's efficiency in generating sales from its assets, potentially indicating improved operational performance and financial health.