DigitalOcean HoldingsDOCN -5.26%68 Quick Ratio is 1.46 as of Mar. 2026, which is 47% below its 10-year median of 2.73. GuruFocus rates DOCN with a GF Score™ of 68/100 and a GF Value™ of $45.62 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 2,863 Software companies, DigitalOcean Holdings ranks worse than 57.42% on this metric.
DigitalOcean Holdings has a quick ratio of 1.46. It generally indicates good short-term financial strength.
The historical rank and industry rank for DigitalOcean Holdings's Quick Ratio or its related term are showing as below:
DOCN'
s Quick Ratio Range Over the Past 10 Years
Min: 0.69 Med: 2.73 Max: 30.39
Current: 1.46
During the past 8 years, DigitalOcean Holdings's highest Quick Ratio was 30.39. The lowest was 0.69. And the median was 2.73.
DOCN's Quick Ratio is ranked worse than 57.42% of 2863
companies
in the Software industry
Industry Median: 1.7
vs DOCN: 1.46
DigitalOcean Holdings (NYSE:DOCN) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
DigitalOcean Holdings Quick Ratio Related Terms
DigitalOcean Holdings Quick Ratio Historical Data
* Premium members only.
The historical data trend for DigitalOcean Holdings's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, DigitalOcean Holdings's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DigitalOcean Holdings Quick Ratio vs Software Industry
For the Software industry and Technology sector, DigitalOcean Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where DigitalOcean Holdings's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
DigitalOcean Holdings's Quick Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DigitalOcean Holdings (DOCN) has a Quick Ratio of 1.46 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on DigitalOcean Holdings and its competitors. This is 47% below median its historical median of 2.73. Over the past decade, DigitalOcean Holdings' Quick Ratio has ranged from 0.69 to 30.39. According to the industry distribution chart, DigitalOcean Holdings ranks #1644 out of 2863 companies in the Software industry, placing it in the top 57.4%.
Is DigitalOcean Holdings' Quick Ratio too high?
DigitalOcean Holdings' current Quick Ratio of 1.46 is 47% below median its 10-year median of 2.73. Over the past 10 years, this metric has ranged from a low of 0.69 to a high of 30.39. The Software industry median Quick Ratio is 1.70. DigitalOcean Holdings' value of 1.46 is 14.1% below this industry median. Based on the distribution chart, DigitalOcean Holdings ranks #1644 out of 2863 companies in the Software industry, which is below the industry midpoint. Overall, DigitalOcean Holdings has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does DigitalOcean Holdings' Quick Ratio compare to RBRK and GEN?
According to the Software industry distribution chart, DigitalOcean Holdings ranks #1644 out of 2863 companies for Quick Ratio. This places DigitalOcean Holdings in the lower half of its industry. The industry median Quick Ratio is 1.70. DigitalOcean Holdings' value of 1.46 is 14.1% below this benchmark. Historically, DigitalOcean Holdings' own Quick Ratio has ranged from 0.69 to 30.39 over the past decade. While the company's 10-year median is 2.73 vs. the industry median of 1.70, DigitalOcean Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,863 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DigitalOcean Holdings's current Quick Ratio of 1.46 is 14.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on DigitalOcean Holdings and its competitors. For the Software industry, the median Quick Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalOcean Holdings's current Quick Ratio is 1.46, which is 47% below median its own 10-year median of 2.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DigitalOcean Holdings stock overvalued right now?
Based on GuruFocus' analysis, DigitalOcean Holdings (DOCN) is currently considered Significantly Overvalued. The stock's GF Value™ is $45.62, compared to a current price of $148.91 — trading 226.4% above its estimated fair value. The current Quick Ratio is 1.46, which is 47% below median its 10-year median of 2.73 and 14.1% below the Software industry median of 1.70. DigitalOcean Holdings' overall GF Score™ is 68/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For DigitalOcean Holdings (DOCN), the current Quick Ratio is 1.46 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is DigitalOcean Holdings (DOCN) Overvalued in 2026?
Based on GuruFocus' analysis, DigitalOcean Holdings stock appears to be overvalued.
The current stock price of $148.91 is trading 226.4% above its estimated GF Value™ of $45.62.
GuruFocus considers DigitalOcean Holdings to be Significantly Overvalued.
Key valuation signals for DOCN:
Quick Ratio: 1.46 (47% below median its 10-year median of 2.73)
GF Value™: $45.62 vs. price of $148.91 (226.4% above fair value)
Industry Position: 14.1% below the Software median (#1644 of 2863)
No single metric tells the full story. See the DOCN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DigitalOcean Holdings Inc is a cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups, and small and medium-sized businesses. The customers use the platform for a wide range of cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, and managed services, among many others. Geographically, the company generates maximum revenue from North America and also has a presence in Europe, Asia, and the Rest of the world.
68GF Score
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