DigitalOcean Holdings Inc (DOCN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 19,409 | -27,804 | -19,503 |
| Total stockholders’ equity | US$ in thousands | -313,698 | 47,569 | 578,197 |
| ROE | — | -58.45% | -3.37% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $19,409K ÷ $-313,698K
= —
DigitalOcean Holdings Inc's Return on Equity (ROE) is a financial ratio that measures the company's ability to generate profits from its shareholders' equity.
From the data provided, we observe a significant improvement in the company's ROE performance over the three-year period. In 2021, the ROE was -3.37%, indicating that the company was not efficiently utilizing its equity to generate profits, resulting in a net loss. However, by the end of 2022, the ROE further declined to -58.45%, suggesting a deteriorating financial performance and a significant decrease in shareholder value.
It is important to note that a negative ROE indicates that the company is not generating sufficient profits to cover its costs and is potentially a cause for concern for investors.
Unfortunately, the ROE figure for 2023 is missing in the data provided, preventing a direct comparison or further analysis of the company's performance in that year.
In conclusion, based on the available data, DigitalOcean Holdings Inc experienced challenges in generating returns for its shareholders in the past years, as indicated by the negative ROE figures. Further analysis and exploration of the company's financial statements and business operations would be necessary to understand the underlying reasons for these trends and to assess the company's future prospects.
Peer comparison
Dec 31, 2023