DigitalOcean Holdings Inc (DOCN)

Working capital turnover

		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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Revenue (ttm)	US$ in thousands	712,480	692,884	675,008	650,061	614,129	576,322	532,986	492,299	462,227	428,561
Total current assets	US$ in thousands	515,813	502,994	471,459	642,069	698,612	945,991	908,356	1,231,130	1,611,900	1,770,060	642,783	629,117	607,282
Total current liabilities	US$ in thousands	188,951	192,645	184,289	167,311	54,240	165,516	98,808	74,227	62,451	58,239	57,577	55,387	46,049
Working capital turnover		2.18	2.23	2.35	1.37	0.95	0.74	0.66	0.43	0.30	0.25

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $712,480K ÷ ($515,813K – $188,951K)
= 2.18

The working capital turnover ratio for DigitalOcean Holdings Inc has varied over the past few quarters, indicating how efficiently the company is utilizing its working capital to generate sales revenue.

The trend shows that the working capital turnover has been fluctuating. In the latest quarter, ending March 31, 2024, the ratio stands at 2.18, a slight decrease compared to the previous quarter's ratio of 2.23. This suggests that for every dollar of working capital, the company generated $2.18 of revenue during the quarter.

The ratio peaked at 2.35 in the quarter ending September 30, 2023, indicating a strong utilization of working capital to generate sales. However, there was a significant drop in the efficiency of working capital utilization in the quarter ending March 31, 2023, with a ratio of 0.95.

Overall, the trend suggests that the company has been gradually improving its efficiency in utilizing working capital to generate revenue, but there have been periods of fluctuations which may require further analysis to understand the underlying reasons.