DigitalOcean Holdings Inc (DOCN)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,485,370 | 1,477,800 | 1,470,270 | 1,462,680 |
| Total assets | US$ in thousands | 1,639,020 | 1,460,970 | 1,815,630 | 2,101,000 |
| Debt-to-assets ratio | 0.91 | 1.01 | 0.81 | 0.70 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,485,370K ÷ $1,639,020K
= 0.91
The debt-to-assets ratio of DigitalOcean Holdings Inc has been steadily increasing over the past four years. It was 0.70 as of December 31, 2021, indicating that 70% of the company's assets were funded by debt. By December 31, 2024, the ratio had reached 0.91, implying that 91% of the company's assets were financed by debt. This trend suggests that DigitalOcean Holdings Inc has been relying more on debt to finance its operations and investments, which could potentially increase the company's financial risk and interest expense. It would be essential for stakeholders to monitor this ratio closely to ensure the company's ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2024