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DOCN (DigitalOcean Holdings) Asset Turnover : 0.13 (As of Dec. 2024)


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What is DigitalOcean Holdings Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. DigitalOcean Holdings's Revenue for the three months ended in Dec. 2024 was $204.9 Mil. DigitalOcean Holdings's Total Assets for the quarter that ended in Dec. 2024 was $1,582.7 Mil. Therefore, DigitalOcean Holdings's Asset Turnover for the quarter that ended in Dec. 2024 was 0.13.

Asset Turnover is linked to ROE % through Du Pont Formula. DigitalOcean Holdings's annualized ROE % for the quarter that ended in Dec. 2024 was -35.24%. It is also linked to ROA % through Du Pont Formula. DigitalOcean Holdings's annualized ROA % for the quarter that ended in Dec. 2024 was 4.62%.


DigitalOcean Holdings Asset Turnover Historical Data

The historical data trend for DigitalOcean Holdings's Asset Turnover 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.

* Premium members only.

DigitalOcean Holdings Asset Turnover Chart

DigitalOcean Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Asset Turnover
Get a 7-Day Free Trial 0.87 0.34 0.29 0.42 0.50

DigitalOcean Holdings Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Asset Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.13 0.13 0.13 0.13 0.13

Competitive Comparison of DigitalOcean Holdings's Asset Turnover

For the Software - Infrastructure subindustry, DigitalOcean Holdings's Asset Turnover, along with its competitors' market caps and Asset Turnover 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's Asset Turnover Distribution in the Software Industry

For the Software industry and Technology sector, DigitalOcean Holdings's Asset Turnover distribution charts can be found below:

* The bar in red indicates where DigitalOcean Holdings's Asset Turnover falls into.



DigitalOcean Holdings Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

DigitalOcean Holdings's Asset Turnover for the fiscal year that ended in Dec. 2024 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2024 )/( (Total Assets (A: Dec. 2023 )+Total Assets (A: Dec. 2024 ))/ count )
=780.615/( (1460.967+1639.015)/ 2 )
=780.615/1549.991
=0.50

DigitalOcean Holdings's Asset Turnover for the quarter that ended in Dec. 2024 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2024 )/( (Total Assets (Q: Sep. 2024 )+Total Assets (Q: Dec. 2024 ))/ count )
=204.925/( (1526.478+1639.015)/ 2 )
=204.925/1582.7465
=0.13

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


DigitalOcean Holdings  (NYSE:DOCN) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

DigitalOcean Holdings's annulized ROE % for the quarter that ended in Dec. 2024 is

ROE %**(Q: Dec. 2024 )
=Net Income/Total Stockholders Equity
=73.064/-207.329
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(73.064 / 819.7)*(819.7 / 1582.7465)*(1582.7465/ -207.329)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.91 %*0.5179*-7.634
=ROA %*Equity Multiplier
=4.62 %*-7.634
=-35.24 %

Note: The Net Income data used here is four times the quarterly (Dec. 2024) net income data. The Revenue data used here is four times the quarterly (Dec. 2024) revenue data.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

DigitalOcean Holdings's annulized ROA % for the quarter that ended in Dec. 2024 is

ROA %(Q: Dec. 2024 )
=Net Income/Total Assets
=73.064/1582.7465
=(Net Income / Revenue)*(Revenue / Total Assets)
=(73.064 / 819.7)*(819.7 / 1582.7465)
=Net Margin %*Asset Turnover
=8.91 %*0.5179
=4.62 %

Note: The Net Income data used here is four times the quarterly (Dec. 2024) net income data. The Revenue data used here is four times the quarterly (Dec. 2024) revenue data.

* 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.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


DigitalOcean Holdings Asset Turnover Related Terms

Thank you for viewing the detailed overview of DigitalOcean Holdings's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


DigitalOcean Holdings Business Description

Traded in Other Exchanges
Address
101 6th Avenue, New York, NY, USA, 10013
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. The group has a business presence in North America, Europe, Asia and Other countries.
Executives
Matt Steinfort officer: Chief Financial Officer 1805 29TH STREET SUITE 2050, BOULDER CO 80301
Amy S Butte director C/O L CATTERTON MANAGEMENT, 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
Yancey L. Spruill director, officer: Chief Executive Officer 1601 DRY CREEK DRIVE, SUITE 260, LONGMONT CO 80503
Megan Wood officer: Chief Strategy Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Jeffrey Scott Guy officer: Chief Operating Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Warren Jenson director 30 FREDRICK AVE, ATHERTON CA 94027
Harold Matthew Norman officer: Chief People Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Christopher Merritt director C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Carly D Brantz officer: Chief Marketing Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Alan Shapiro officer: General Counsel
Muhammad Aaqib Gadit officer: Chief Revenue Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Gabriel Monroy officer: Chief Product Officer C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Adrienne Elizabeth Calderone officer: SVP, Chief Accounting Officer 101 6TH AVENUE, NEW YORK NY 10013
Andreessen Horowitz Fund Iii, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Ah Capital Management, L.l.c. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025