DigitalOcean Holdings Inc (DOCN)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	-202,955	-211,703	-253,784	-286,072	-313,698	-358,773	-267,579	-202,608	47,569	27,010	47,260	427,386	578,197
Debt-to-equity ratio		—	—	—	—	—	—	—	—	30.91	54.36	31.03	3.43	2.53

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,485,370K ÷ $-202,955K
= —

The debt-to-equity ratio of DigitalOcean Holdings Inc has been fluctuating over the periods mentioned in the dataset.

As of December 31, 2021, the debt-to-equity ratio was 2.53, indicating that the company had $2.53 in debt for every $1 of equity. This ratio increased to 3.43 as of March 31, 2022, reflecting a higher level of debt relative to equity.

The ratio experienced a significant jump to 31.03 by June 30, 2022, followed by a further increase to 54.36 by September 30, 2022. These elevated levels suggest a substantial reliance on debt financing compared to equity, which may raise concerns about the company's financial leverage and solvency.

The debt-to-equity ratio decreased to 30.91 by December 31, 2022, showing some moderation in the debt levels. However, there is missing data for the subsequent periods from March 31, 2023, onwards, which limits a more comprehensive analysis of the trend.

Overall, the increasing trend in the debt-to-equity ratio up to September 30, 2022, indicates a potential shift towards heavier debt financing, which could impact the company's financial stability and risk profile. Subsequent data points are needed to assess whether this trend continues or if there are changes in the company's capital structure.