DigitalOcean Holdings Profit Margin vs. Net Income

DOCN Stock  USD 38.87  1.34  3.57%   
Based on DigitalOcean Holdings' profitability indicators, DigitalOcean Holdings is yielding more profit at the present time then in previous quarter. It has a moderate chance of reporting better profitability numbers in December. Profitability indicators assess DigitalOcean Holdings' ability to earn profits and add value for shareholders.

DigitalOcean Holdings Net Profit Margin

0.0294

As of the 22nd of November 2024, Sales General And Administrative To Revenue is likely to grow to 0.29, while Price To Sales Ratio is likely to drop 4.53. At this time, DigitalOcean Holdings' Income Tax Expense is very stable compared to the past year. As of the 22nd of November 2024, Non Operating Income Net Other is likely to grow to about 12.3 M, while Accumulated Other Comprehensive Income is likely to drop (474.6 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.460.5902
Significantly Down
Slightly volatile
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.
  
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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 Net Income vs. Profit Margin 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 # 2 in profit margin category among its peers. It is rated # 4 in net income category among its peers making up about  178,720,074  of Net Income per Profit Margin. At this time, DigitalOcean Holdings' Net Profit Margin 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 Net Income vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

DigitalOcean Holdings

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.11 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

DigitalOcean Holdings

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
19.41 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

DigitalOcean Net Income Comparison

DigitalOcean Holdings is currently under evaluation in net income 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-452 K-474.6 K
Net Interest Income14.9 M15.6 M
Operating Income11.9 M12.5 M
Net Income From Continuing Ops19.4 M20.4 M
Income Before Tax26.8 M28.1 M
Total Other Income Expense Net14.9 M15.6 M
Net Loss-27.9 M-29.3 M
Net Income19.4 M20.4 M
Income Tax Expense7.4 M7.7 M
Interest Income23.8 M12.7 M
Non Operating Income Net Other11.7 M12.3 M
Change To Netincome147.3 M154.7 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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When determining whether DigitalOcean Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of DigitalOcean Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Digitalocean Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Digitalocean Holdings Stock:
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To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.
You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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.
Potential DigitalOcean Holdings investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although DigitalOcean Holdings investors may work on each financial statement separately, they are all related. The changes in DigitalOcean Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on DigitalOcean Holdings's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.