DigitalOcean Holdings Inc (DOCN)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	56,490	11,896	-10,455	-38,725	-45,169	-25,697	-24,470	-33,339	-28,024	-11,186
Total assets	US$ in thousands	1,485,570	1,460,970	1,425,140	1,497,900	1,995,260	1,815,630	1,623,690	1,590,710	1,956,830	2,101,000	965,825	915,430	893,265
Operating ROA		3.80%	0.81%	-0.73%	-2.59%	-2.26%	-1.42%	-1.51%	-2.10%	-1.43%	-0.53%

March 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $56,490K ÷ $1,485,570K
= 3.80%

DigitalOcean Holdings Inc's operating return on assets (operating ROA) has fluctuated over the past few quarters. The operating ROA increased significantly to 3.80% as of March 31, 2024, indicating improved profitability relative to its asset base. This could be a result of better operational efficiency or revenue generation from its assets.

Prior to this improvement, the operating ROA had been relatively low or negative, with the lowest point at -2.59% in June 30, 2023. This suggests that during those periods, the company may have been struggling to generate profits from its operating activities in relation to the assets employed.

Overall, the recent increase in operating ROA is a positive indicator for DigitalOcean Holdings Inc, as it shows a potential enhancement in the company's ability to generate profits from its operational assets. It will be important to monitor future trends to assess the sustainability of this improvement.