DigitalOcean Holdings Inc (DOCN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | -202,955 | -313,698 | 47,569 | 578,197 |
| ROE | — | — | -58.45% | -3.37% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $84,492K ÷ $-202,955K
= —
DigitalOcean Holdings Inc's Return on Equity (ROE) has shown a declining trend over the years. In December 31, 2021, the ROE was -3.37%, indicating that the company was not effectively utilizing its equity to generate profit. This trend worsened significantly by December 31, 2022, with the ROE dropping to -58.45%, reflecting a substantial decrease in the company's ability to generate profit relative to its equity.
Interestingly, the ROE figures for December 31, 2023 and December 31, 2024 are not available, denoted by "—". This lack of data prevents a comprehensive assessment of the company's performance in those periods.
Overall, the negative ROE figures suggest that DigitalOcean Holdings Inc may be facing challenges in generating profits relative to the equity invested in the business. This could raise concerns about the company's operational efficiency and financial health. Further analysis and contextual information would be needed to fully understand the reasons behind the declining ROE and to assess the company's overall financial performance accurately.
Peer comparison
Dec 31, 2024