DigitalOcean Holdings Inc (DOCN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,639,020 | 1,460,970 | 1,815,630 | 2,101,000 |
| Total stockholders’ equity | US$ in thousands | -202,955 | -313,698 | 47,569 | 578,197 |
| Financial leverage ratio | — | — | 38.17 | 3.63 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,639,020K ÷ $-202,955K
= —
The financial leverage ratio for DigitalOcean Holdings Inc has shown a significant increase over the years, from 3.63 on December 31, 2021, to 38.17 on December 31, 2022. However, there is missing data for the years 2023 and 2024.
The substantial increase in the financial leverage ratio indicates that the company has been relying more on debt to finance its operations and growth. This could be a cause for concern as higher leverage levels generally imply higher financial risk for the company.
It is important for investors and stakeholders to monitor the company's leverage ratio closely to ensure that it remains at a sustainable level and does not lead to financial distress in the long run. Additional information about the company's debt structure and ability to service its debt obligations would provide further insights into its financial health.
Peer comparison
Dec 31, 2024