DigitalOcean Holdings Inc (DOCN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| 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 |
| Current ratio | 2.61 | 5.72 | 30.39 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $502,994K ÷ $192,645K
= 2.61
The current ratio of DigitalOcean Holdings Inc has shown a significant decrease over the past three years, dropping from 30.39 in 2021 to 5.72 in 2022, and further to 2.61 in 2023. This indicates that the company's ability to cover its short-term liabilities with its current assets has weakened over this period. While a current ratio above 1 generally indicates good liquidity, the declining trend may raise concerns about the company's short-term financial health and ability to meet its upcoming obligations. Further investigation into the company's asset management and liquidity management practices may be necessary to address this downward trend in the current ratio.
Peer comparison
Dec 31, 2023