DigitalOcean Holdings Gross Profit vs. Operating Margin
| DOCN Stock | USD 38.08 0.20 0.53% |
Gross Profit | First Reported 2017-12-31 | Previous Quarter 117.3 M | Current Value 119.4 M | Quarterly Volatility 33.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.46 | 0.5902 |
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For DigitalOcean Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DigitalOcean Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DigitalOcean Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DigitalOcean Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DigitalOcean Holdings over time as well as its relative position and ranking within its peers.
DigitalOcean |
Is Internet Services & Infrastructure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DigitalOcean Holdings. If investors know DigitalOcean will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DigitalOcean Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.65 | Earnings Share 0.86 | Revenue Per Share 8.348 | Quarterly Revenue Growth 0.121 | Return On Assets 0.0438 |
The market value of DigitalOcean Holdings is measured differently than its book value, which is the value of DigitalOcean that is recorded on the company's balance sheet. Investors also form their own opinion of DigitalOcean Holdings' value that differs from its market value or its book value, called intrinsic value, which is DigitalOcean Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DigitalOcean Holdings' market value can be influenced by many factors that don't directly affect DigitalOcean Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between DigitalOcean Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if DigitalOcean Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DigitalOcean Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
DigitalOcean Holdings Operating Margin vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DigitalOcean Holdings's current stock value. Our valuation model uses many indicators to compare DigitalOcean Holdings value to that of its competitors to determine the firm's financial worth. DigitalOcean Holdings is rated below average in gross profit category among its peers. It is rated # 2 in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for DigitalOcean Holdings is about 2,938,669,355 . At this time, DigitalOcean Holdings' Gross Profit is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the DigitalOcean Holdings' earnings, one of the primary drivers of an investment's value.DigitalOcean Operating Margin vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
DigitalOcean Holdings |
| = | 364.39 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
DigitalOcean Holdings |
| = | 0.12 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
DigitalOcean Operating Margin Comparison
DigitalOcean Holdings is currently under evaluation in operating margin category among its peers.
DigitalOcean Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in DigitalOcean Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DigitalOcean Holdings will eventually generate negative long term returns. The profitability progress is the general direction of DigitalOcean Holdings' change in net profit over the period of time. It can combine multiple indicators of DigitalOcean Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -452 K | -474.6 K | |
| Net Interest Income | 14.9 M | 15.6 M | |
| Operating Income | 11.9 M | 12.5 M | |
| Net Income From Continuing Ops | 19.4 M | 20.4 M | |
| Income Before Tax | 26.8 M | 28.1 M | |
| Total Other Income Expense Net | 14.9 M | 15.6 M | |
| Net Loss | -27.9 M | -29.3 M | |
| Net Income | 19.4 M | 20.4 M | |
| Income Tax Expense | 7.4 M | 7.7 M | |
| Interest Income | 23.8 M | 12.7 M | |
| Non Operating Income Net Other | 11.7 M | 12.3 M | |
| Change To Netincome | 147.3 M | 154.7 M | |
| Net Income Per Share | 0.22 | 0.23 | |
| Income Quality | 12.10 | 12.71 | |
| Net Income Per E B T | 0.72 | 1.08 |
DigitalOcean Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on DigitalOcean Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of DigitalOcean Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the DigitalOcean Holdings' important profitability drivers and their relationship over time.
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To fully project DigitalOcean Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DigitalOcean Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include DigitalOcean Holdings' income statement, its balance sheet, and the statement of cash flows.