DigitalOcean Holdings Inc (DOCN)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Revenue	US$ in thousands	692,884	576,322	428,561
Total current assets	US$ in thousands	502,994	945,991	1,770,060
Total current liabilities	US$ in thousands	192,645	165,516	58,239
Working capital turnover		2.23	0.74	0.25

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $692,884K ÷ ($502,994K – $192,645K)
= 2.23

The working capital turnover for DigitalOcean Holdings Inc has shown significant improvement over the past three years, reflecting the company's ability to efficiently utilize its working capital to generate sales.

In 2021, the working capital turnover was 0.25, indicating that the company generated $0.25 in revenue for every dollar of working capital invested. This figure more than doubled in 2022 to 0.74, suggesting an enhanced efficiency in capital deployment. Notably, by the end of 2023, the working capital turnover surged to 2.23, showcasing a substantial uptrend and a remarkable threefold increase compared to the previous year.

This upward trajectory indicates that DigitalOcean Holdings Inc has been able to effectively manage its working capital resources to support its business operations and drive revenue growth. The significant improvement in working capital turnover reflects positively on the company's operational efficiency and financial performance.