DigitalOcean Holdings Inc (DOCN)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Net income | US$ in thousands | 84,492 | 19,409 | -27,804 | -19,503 |
| Total assets | US$ in thousands | 1,639,020 | 1,460,970 | 1,815,630 | 2,101,000 |
| ROA | 5.16% | 1.33% | -1.53% | -0.93% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $84,492K ÷ $1,639,020K
= 5.16%
DigitalOcean Holdings Inc's return on assets (ROA) has exhibited fluctuations over the period under review. The ROA was negative in the fiscal years ending December 31, 2021 and December 31, 2022, indicating that the company's net income generated from its assets was insufficient to cover its total assets during those years. This suggests potential inefficiency in asset utilization and profitability.
However, there was a significant improvement in the ROA for the fiscal years ending December 31, 2023 and December 31, 2024, with positive values of 1.33% and 5.16%, respectively. This indicates that the company's ability to generate profit from its assets improved notably in these years, reflecting increased efficiency in asset management and potentially stronger financial performance.
Overall, DigitalOcean Holdings Inc's ROA trend suggests a mixed performance in terms of asset utilization and profitability over the period, with recent years showing a positive turnaround in generating returns from its assets. Further analysis of the factors driving these changes may provide insights into the company's operational and financial strategies.
Peer comparison
Dec 31, 2024