DigitalOcean Holdings Inc (DOCN)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Long-term debt	US$ in thousands	1,477,800	1,470,270	1,462,680
Total assets	US$ in thousands	1,460,970	1,815,630	2,101,000
Debt-to-assets ratio		1.01	0.81	0.70

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,477,800K ÷ $1,460,970K
= 1.01

The debt-to-assets ratio of DigitalOcean Holdings Inc has been increasing over the past three years, standing at 1.01 as of December 31, 2023, compared to 0.81 in 2022 and 0.70 in 2021. This indicates that the company's reliance on debt to finance its assets has been growing. A higher debt-to-assets ratio suggests that a larger portion of the company's assets are funded by debt, which can increase financial risk due to higher interest payments and potential difficulties in meeting debt obligations. It is important for investors and stakeholders to monitor this trend closely to assess the company's ability to manage its debt levels effectively and sustainably in the long term.