DigitalOcean Holdings Inc (DOCN)

Debt-to-equity 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-equity ratio		—	—	—	—	—	30.91	54.36	31.03	3.43	2.53	0.00	0.00	0.00

March 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,479,690K ÷ $-286,072K
= —

The debt-to-equity ratio of DigitalOcean Holdings Inc has exhibited significant fluctuations over the past few quarters. The ratio was not available for the most recent quarter as of March 31, 2024.

Looking at historical data, the trend shows that the company had a relatively high debt-to-equity ratio in the September 2022 quarter at 54.36, indicating higher reliance on debt to finance its operations compared to equity. However, by the end of December 2022, the ratio decreased sharply to 3.43, reflecting a significant reduction in debt relative to equity.

In the subsequent quarters, the company managed to maintain a low debt-to-equity ratio, with values of 2.53 in March 2022 and 0.00 in the following quarters. The consistent trend of lower or zero debt levels relative to equity reflects a strong capital structure and financial stability.

It is important to note that without the data for March 31, 2024, the complete picture of the company's leverage position is not available. However, based on the trend observed in the previous quarters, DigitalOcean Holdings Inc seems to have effectively managed its debt levels and maintained a healthy balance between debt and equity in its capital structure.