DigitalOcean Holdings Inc (DOCN)

Financial leverage 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
Total assets	US$ in thousands	1,485,570	1,460,970	1,425,140	1,497,900	1,995,260	1,815,630	1,623,690	1,590,710	1,956,830	2,101,000	965,825	915,430	893,265
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
Financial leverage ratio		—	—	—	—	—	38.17	60.11	33.66	4.58	3.63	1.07	1.07	1.06

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,485,570K ÷ $-286,072K
= —

The financial leverage ratio of DigitalOcean Holdings Inc has shown significant fluctuations over the past few quarters. The ratio was not available for the periods ending on Mar 31, 2024, Dec 31, 2023, Sep 30, 2023, Jun 30, 2023, and Mar 31, 2023. However, notable trends can be observed in the historical data available.

In the period ending Dec 31, 2022, the financial leverage ratio stood at 38.17, indicating a significant increase compared to the previous quarter. This surge suggests that the company had taken on more debt relative to its equity, potentially magnifying its financial risk.

The ratio peaked at a high of 60.11 in the quarter ending Sep 30, 2022, signaling a substantial increase in financial leverage. Such a high ratio may raise concerns about the company's ability to meet its financial obligations, especially in challenging economic conditions.

However, in the subsequent quarters ending Jun 30, 2022, and Mar 31, 2022, the financial leverage ratio decreased sharply to 33.66 and 4.58, respectively. These declines indicate a reduction in the company's reliance on debt financing and a healthier balance between debt and equity in its capital structure.

In the earlier periods ending Dec 31, 2021, and Sep 30, 2021, the financial leverage ratio was relatively low, standing at 1.07, highlighting a conservative approach to leverage and a strong equity base.

Overall, the analysis of DigitalOcean Holdings Inc's financial leverage ratio suggests a fluctuating trend in the company's capital structure and debt management practices. Investors and stakeholders should closely monitor these ratios to assess the company's risk profile and financial stability.