DigitalOcean Holdings Inc (DOCN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 60.04% | 59.02% | 60.04% | 60.60% | 61.47% | 63.23% | 63.20% | 62.84% | 61.44% | 60.19% |
| Operating profit margin | 7.93% | 1.72% | -1.55% | -5.96% | -7.35% | -4.46% | -4.59% | -6.77% | -6.06% | -2.61% |
| Pretax margin | 9.67% | 1.18% | -2.09% | -6.59% | -8.92% | -4.01% | -4.80% | -7.29% | -6.63% | -4.25% |
| Net profit margin | 7.01% | 2.80% | -0.98% | -2.75% | -4.12% | -4.69% | -5.46% | -7.89% | -7.42% | -4.55% |
DigitalOcean Holdings Inc has shown consistent gross profit margins ranging from 59.02% to 63.23% over the past ten quarters, indicating efficient cost management in generating revenues. However, the operating profit margin has fluctuated significantly, with negative margins in some quarters, which may suggest challenges in controlling operating expenses or generating sufficient operating income. The pretax margin has also varied, with margins ranging from -8.92% to 9.67%, reflecting fluctuations in pre-tax profitability.
The net profit margin has shown a similar pattern, fluctuating between positive and negative margins, with the highest margin at 7.01% and the lowest at -7.89%. This indicates that DigitalOcean's bottom-line profitability has been inconsistent over the quarters analyzed. Overall, the company's profitability ratios suggest a need for sustained improvement in operational efficiency and cost management to enhance overall profitability in the future.
Return on investment
| 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 return on assets (Operating ROA) | 3.80% | 0.81% | -0.73% | -2.59% | -2.26% | -1.42% | -1.51% | -2.10% | -1.43% | -0.53% |
| Return on assets (ROA) | 3.36% | 1.33% | -0.46% | -1.19% | -1.27% | -1.49% | -1.79% | -2.44% | -1.75% | -0.93% |
| Return on total capital | 6.53% | 1.47% | -0.48% | -2.84% | -3.64% | -0.97% | -1.22% | -2.01% | -1.43% | -0.71% |
| Return on equity (ROE) | — | — | — | — | — | -56.85% | -107.75% | -82.22% | -8.02% | -3.37% |
DigitalOcean Holdings Inc's profitability ratios have shown fluctuations over the past several quarters.
- Operating return on assets (Operating ROA) has shown improvement in the latest quarter (Mar 31, 2024) compared to previous quarters, indicating the company's ability to generate operating profits from its assets has increased.
- Return on assets (ROA) has also improved in Mar 31, 2024 compared to the previous quarter, reflecting a better overall profitability performance in relation to its total assets.
- Return on total capital has shown a significant increase in Mar 31, 2024 compared to the previous quarter, indicating a more efficient use of total capital employed.
- Return on equity (ROE) has not been provided for the latest quarter, but previous quarters have shown negative and fluctuating values, indicating challenges in generating returns for shareholders.
Overall, while there have been improvements in some profitability ratios in the latest quarter, DigitalOcean Holdings Inc may still face challenges in delivering consistent and sustainable returns for its shareholders.