DigitalOcean Holdings Inc (DOCN)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	-313,698	47,569	578,197
Debt-to-equity ratio		—	30.91	2.53

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,477,800K ÷ $-313,698K
= —

The debt-to-equity ratio of DigitalOcean Holdings Inc has shown a significant increase over the years, indicating a shift towards higher reliance on debt to finance its operations and investments. The ratio was not available for the most recent period, which could be due to a change in reporting or calculation methodologies. In 2022, the debt-to-equity ratio was relatively high at 30.91, reflecting a substantial level of debt compared to equity. This could suggest that the company was highly leveraged during that period. However, in 2021, the ratio was considerably lower at 2.53, indicating a more balanced capital structure with a moderate level of debt relative to equity. Overall, the trend in the debt-to-equity ratio suggests a move towards increased leverage in recent years, which could have implications for the company's financial risk and stability.