DigitalOcean Holdings Inc (DOCN)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 84,492 | 82,164 | 68,390 | 49,917 | 19,408 | -6,596 | -17,868 | -25,292 | -27,045 | -29,104 | -38,859 | -34,287 | -19,503 |
| 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 |
| ROA | 5.16% | 5.38% | 4.45% | 3.36% | 1.33% | -0.46% | -1.19% | -1.27% | -1.49% | -1.79% | -2.44% | -1.75% | -0.93% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $84,492K ÷ $1,639,020K
= 5.16%
DigitalOcean Holdings Inc's return on assets (ROA) has shown significant improvement over the past several quarters. The ROA was negative for the majority of 2021 and 2022, indicating that the company was not effectively utilizing its assets to generate profits during that period. However, starting from the end of 2023, the ROA turned positive and has been increasing consistently since then.
The ROA improved from 1.33% at the end of 2023 to 5.16% at the end of 2024, reflecting a stronger ability to generate profits from its assets. This positive trend suggests that DigitalOcean has become more efficient in utilizing its resources to generate earnings for its shareholders. Overall, the improving ROA indicates that the company's profitability and efficiency have been on an upward trajectory in recent quarters, which is a positive sign for stakeholders and investors.
Peer comparison
Dec 31, 2024