DigitalOcean Holdings Inc (DOCN)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 49,918 | 19,409 | -6,596 | -17,868 | -25,292 | -27,045 | -29,104 | -38,859 | -34,287 | -19,503 | |||
| 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 |
| ROA | 3.36% | 1.33% | -0.46% | -1.19% | -1.27% | -1.49% | -1.79% | -2.44% | -1.75% | -0.93% |
March 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $49,918K ÷ $1,485,570K
= 3.36%
DigitalOcean Holdings Inc's return on assets (ROA) has exhibited fluctuations over the past few quarters. The ROA increased to 3.36% as of March 31, 2024, reflecting an improvement compared to the previous quarters. This suggests that the company generated $0.0336 in profit for every dollar of assets it owns at the end of the first quarter of 2024.
Prior to this, the ROA was relatively lower, with values ranging from -1.27% to -2.44% throughout the earlier quarters of 2022 and 2023. These negative values indicate that the company was not efficiently utilizing its assets to generate profits during those periods, which may have been a concern for investors and stakeholders.
The negative trend in ROA reversed in the recent quarters, indicating potential operational improvements or strategic changes that have positively impacted the company's profitability relative to its asset base. However, it is essential to monitor future ROA trends to ensure sustained efficiency in asset utilization and profitability for DigitalOcean Holdings Inc.
Peer comparison
Mar 31, 2024