DigitalOcean Holdings Inc (DOCN)

Debt-to-capital ratio

		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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Long-term debt	US$ in thousands	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	0	0	0
Total stockholders’ equity	US$ in thousands	-286,072	-313,698	-358,773	-267,579	-202,608	47,569	27,010	47,260	427,386	578,197	906,433	858,084	845,110
Debt-to-capital ratio		1.24	1.27	1.32	1.22	1.16	0.97	0.98	0.97	0.77	0.72	0.00	0.00	0.00

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,479,690K ÷ ($1,479,690K + $-286,072K)
= 1.24

The debt-to-capital ratio of DigitalOcean Holdings Inc has exhibited fluctuations over the past several quarters. As of March 31, 2024, the ratio stands at 1.24, showing a slight decrease compared to the previous quarter. The ratio has generally trended upwards since the beginning of 2022, indicating an increase in the proportion of debt to total capital.

In the most recent quarter, the company relies on debt for approximately 124% of its total capital structure, suggesting a higher level of leverage. This could imply that DigitalOcean is financing a significant portion of its operations and investments through debt rather than equity.

The ratios of 0.00 in the last three quarters of 2021 might indicate that the company had little to no debt during that period, potentially due to specific strategic decisions or financial transactions.

Overall, monitoring the debt-to-capital ratio is crucial for investors and analysts to assess DigitalOcean's capital structure and financial risk, as higher ratios indicate higher financial leverage and potential risks associated with debt obligations.