DigitalOcean Holdings Inc (DOCN)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 91,007 | 69,457 | 80,319 | 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 | 1,639,020 | 1,526,480 | 1,536,790 | 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 |
| Operating ROA | 5.55% | 4.55% | 5.23% | 3.80% | 0.81% | -0.73% | -2.59% | -2.26% | -1.42% | -1.51% | -2.10% | -1.43% | -0.53% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $91,007K ÷ $1,639,020K
= 5.55%
DigitalOcean Holdings Inc's operating return on assets (ROA) has shown a fluctuating trend over the analyzed period. From December 31, 2021, to June 30, 2023, the operating ROA remained negative, indicating that the company was not effectively generating profits from its assets during this time.
However, starting from December 31, 2023, there was a significant improvement in the operating ROA, turning positive at 0.81% and progressively increasing to 5.55% by the end of December 31, 2024. This positive trend suggests that the company's operational efficiency and profitability from its assets improved over this period.
The increasing trend in the operating ROA indicates that DigitalOcean Holdings Inc has been able to generate more operating profits from its assets, reflecting improved management effectiveness and potentially better utilization of resources. It also portrays a positive outlook for the company's financial performance and overall operational health going forward.
Peer comparison
Dec 31, 2024