DigitalOcean Holdings Inc (DOCN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | -202,955 | -211,703 | -253,784 | -286,072 | -313,698 | -358,773 | -267,579 | -202,608 | 47,569 | 27,010 | 47,260 | 427,386 | 578,197 |
| ROE | — | — | — | — | — | — | — | — | -56.85% | -107.75% | -82.22% | -8.02% | -3.37% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $84,492K ÷ $-202,955K
= —
DigitalOcean Holdings Inc's return on equity (ROE) has been on a declining trend over the past few quarters, starting from -3.37% as of December 31, 2021, to a significant decrease of -107.75% as of September 30, 2022. This negative ROE indicates that the company is not generating sufficient profits relative to its shareholder's equity.
The sharp decrease in ROE could be attributed to various factors such as declining net income, increasing debt levels, or inefficient utilization of equity capital. Investors and analysts typically view a negative ROE unfavorably as it suggests that the company is not effectively leveraging its equity to generate profits.
Without the ROE data for the quarters beyond September 30, 2022, it is challenging to provide further insights into DigitalOcean Holdings Inc's future return on equity performance. However, based on the negative trend witnessed in the available data, it would be important for stakeholders to closely monitor the company's financial performance and strategies to improve profitability and shareholder value.
Peer comparison
Dec 31, 2024