DigitalOcean Holdings Debt
| DOCN Stock | USD 62.40 1.68 2.62% |
At this time, DigitalOcean Holdings' Net Debt is very stable compared to the past year. As of the 11th of February 2026, Interest Debt Per Share is likely to grow to 17.58, while Short and Long Term Debt Total is likely to drop about 1.1 B. With a high degree of financial leverage come high-interest payments, which usually reduce DigitalOcean Holdings' Earnings Per Share (EPS).
Debt Ratio | First Reported 2010-12-31 | Previous Quarter 0.93 | Current Value 0.63 | Quarterly Volatility 0.19272353 |
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DigitalOcean Holdings Bond Ratings
DigitalOcean Holdings financial ratings play a critical role in determining how much DigitalOcean Holdings have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for DigitalOcean Holdings' borrowing costs.| Piotroski F Score | 7 | Strong | View |
| Beneish M Score | (3.31) | Unlikely Manipulator | View |
DigitalOcean Holdings Debt to Cash Allocation
As DigitalOcean Holdings follows its natural business cycle, the capital allocation decisions will not magically go away. DigitalOcean Holdings' decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
DigitalOcean Holdings currently holds 1.7 B in liabilities. DigitalOcean Holdings has a current ratio of 16.26, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about DigitalOcean Holdings' use of debt, we should always consider it together with its cash and equity.DigitalOcean Holdings Total Assets Over Time
DigitalOcean Holdings Assets Financed by Debt
The debt-to-assets ratio shows the degree to which DigitalOcean Holdings uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.DigitalOcean Holdings Debt Ratio | 63.0 |
DigitalOcean Holdings Corporate Bonds Issued
DigitalOcean Holdings issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. DigitalOcean Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt.
DigitalOcean Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning DigitalOcean Holdings Use of Financial Leverage
Leverage ratios show DigitalOcean Holdings' total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of DigitalOcean Holdings' financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 1.9 B | 1.1 B | |
| Net Debt | 1.5 B | 1.5 B | |
| Short Term Debt | 91.2 M | 49 M | |
| Long Term Debt | 1.7 B | 1.2 B | |
| Short and Long Term Debt | 20.1 M | 17.4 M | |
| Long Term Debt Total | 1.3 B | 1.2 B | |
| Net Debt To EBITDA | 4.81 | 4.64 | |
| Debt To Equity | (7.52) | (7.14) | |
| Interest Debt Per Share | 16.74 | 17.58 | |
| Debt To Assets | 0.93 | 0.63 | |
| Long Term Debt To Capitalization | 1.33 | 1.32 | |
| Total Debt To Capitalization | 1.31 | 1.25 | |
| Debt Equity Ratio | (7.52) | (7.14) | |
| Debt Ratio | 0.93 | 0.63 | |
| Cash Flow To Debt Ratio | 0.19 | 0.20 |
Pair Trading with DigitalOcean Holdings
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if DigitalOcean Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DigitalOcean Holdings will appreciate offsetting losses from the drop in the long position's value.Moving against DigitalOcean Stock
| 0.75 | FCT | Firstwave Cloud Tech | PairCorr |
| 0.73 | SNOW | Snowflake | PairCorr |
| 0.65 | BROGF | BROGF | PairCorr |
| 0.64 | CSAI | Cloudastructure Class | PairCorr |
| 0.64 | RVSN | Rail Vision Trending | PairCorr |
The ability to find closely correlated positions to DigitalOcean Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DigitalOcean Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DigitalOcean Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DigitalOcean Holdings to buy it.
The correlation of DigitalOcean Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as DigitalOcean Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DigitalOcean Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for DigitalOcean Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out the analysis of DigitalOcean Holdings Financial Statements. To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Will Internet Services & Infrastructure sector continue expanding? Could DigitalOcean diversify its offerings? Factors like these will boost the valuation of DigitalOcean Holdings. Projected growth potential of DigitalOcean fundamentally drives upward valuation adjustments. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every DigitalOcean Holdings data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 3.537 | Earnings Share 2.5 | Revenue Per Share | Quarterly Revenue Growth 0.157 | Return On Assets |
Understanding DigitalOcean Holdings requires distinguishing between market price and book value, where the latter reflects DigitalOcean's accounting equity. The concept of intrinsic value - what DigitalOcean Holdings' is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push DigitalOcean Holdings' price substantially above or below its fundamental value.
It's important to distinguish between DigitalOcean Holdings' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding DigitalOcean Holdings should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, DigitalOcean Holdings' trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.