DigitalOcean Holdings Inc (DOCN)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,485,370 | 1,483,470 | 1,481,580 | 1,479,690 | 1,477,800 | 1,475,910 | 1,474,030 | 1,472,150 | 1,470,270 | 1,468,390 | 1,466,520 | 1,464,520 | 1,462,680 |
| Total assets | US$ in thousands | 1,639,020 | 1,526,480 | 1,536,790 | 1,485,570 | 1,460,970 | 1,425,140 | 1,497,900 | 1,995,260 | 1,815,630 | 1,623,690 | 1,590,710 | 1,956,830 | 2,101,000 |
| Debt-to-assets ratio | 0.91 | 0.97 | 0.96 | 1.00 | 1.01 | 1.04 | 0.98 | 0.74 | 0.81 | 0.90 | 0.92 | 0.75 | 0.70 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,485,370K ÷ $1,639,020K
= 0.91
Based on the data provided, the debt-to-assets ratio of DigitalOcean Holdings Inc has exhibited some fluctuations over the period from December 31, 2021, to December 31, 2024. The ratio represents the proportion of the company's total debt to its total assets, reflecting its financial leverage and the extent to which its assets are financed by debt.
Initially, the debt-to-assets ratio was 0.70 as of December 31, 2021, indicating that 70% of the company's assets were financed by debt. This ratio increased gradually to 1.04 by September 30, 2023, and then slightly declined to 0.91 by December 31, 2024.
The increasing trend in the debt-to-assets ratio from 2021 to 2023 suggests that DigitalOcean Holdings Inc relied more on debt to finance its operations and investments during this period. However, the subsequent decrease in the ratio from September 2023 to December 2024 may indicate an effort to reduce debt levels or a change in the asset composition of the company.
A high debt-to-assets ratio can imply higher financial risk and vulnerability to economic downturns or interest rate fluctuations. It may also indicate potential challenges in meeting debt obligations. Conversely, a low ratio can signal a stronger financial position and better ability to weather adverse conditions.
Overall, investors and creditors should monitor DigitalOcean Holdings Inc's debt-to-assets ratio over time to assess changes in its capital structure, financial risk profile, and overall financial health.
Peer comparison
Dec 31, 2024