DigitalOcean Holdings Inc (DOCN)
Working capital 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 |
| Total current assets | US$ in thousands | 541,718 | 502,994 | 945,991 | 1,770,060 |
| Total current liabilities | US$ in thousands | 220,955 | 192,645 | 165,516 | 58,239 |
| Working capital turnover | 2.43 | 2.23 | 0.74 | 0.25 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $780,615K ÷ ($541,718K – $220,955K)
= 2.43
The working capital turnover of DigitalOcean Holdings Inc has improved significantly over the four-year period from December 31, 2021, to December 31, 2024. The ratio has increased from 0.25 in December 2021 to 2.43 in December 2024. This indicates that the company is utilizing its working capital more efficiently to generate revenue or sales.
A working capital turnover of 2.43 means that, on average, DigitalOcean Holdings Inc is able to generate sales revenue more than twice the amount of its working capital within a year. This reflects a positive trend in the company's operational efficiency and liquidity management. The increasing trend suggests that the company is managing its current assets and liabilities effectively to support its revenue generation activities.
Overall, the improvement in the working capital turnover ratio demonstrates DigitalOcean Holdings Inc's ability to efficiently utilize its working capital to drive revenue growth and indicates a positive outlook for the company's financial performance.
Peer comparison
Dec 31, 2024