DigitalOcean Depreciation And Amortization vs Operating Income Analysis

DOCN Stock  USD 40.95  0.27  0.66%   
DigitalOcean Holdings financial indicator trend analysis is much more than just examining DigitalOcean Holdings latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether DigitalOcean Holdings is a good investment. Please check the relationship between DigitalOcean Holdings Depreciation And Amortization and its Operating Income accounts. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DigitalOcean Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.

Depreciation And Amortization vs Operating Income

Depreciation And Amortization vs Operating Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of DigitalOcean Holdings Depreciation And Amortization account and Operating Income. At this time, the significance of the direction appears to have very strong relationship.
The correlation between DigitalOcean Holdings' Depreciation And Amortization and Operating Income is 0.84. Overlapping area represents the amount of variation of Depreciation And Amortization that can explain the historical movement of Operating Income in the same time period over historical financial statements of DigitalOcean Holdings, assuming nothing else is changed. The correlation between historical values of DigitalOcean Holdings' Depreciation And Amortization and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Depreciation And Amortization of DigitalOcean Holdings are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Depreciation And Amortization i.e., DigitalOcean Holdings' Depreciation And Amortization and Operating Income go up and down completely randomly.

Correlation Coefficient

0.84
Relationship DirectionPositive 
Relationship StrengthStrong

Depreciation And Amortization

The systematic reduction in the recorded value of an intangible asset. This includes the allocation of the cost of tangible assets to periods in which the assets are used, representing the expense related to the wear and tear, deterioration, or obsolescence of physical assets and intangible assets over their useful lives.

Operating Income

Operating Income is the amount of profit realized from DigitalOcean Holdings operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of DigitalOcean Holdings is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.
Most indicators from DigitalOcean Holdings' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into DigitalOcean Holdings current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DigitalOcean Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.At this time, DigitalOcean Holdings' Tax Provision is very stable compared to the past year. As of the 31st of October 2024, Sales General And Administrative To Revenue is likely to grow to 0.29, while Selling General Administrative is likely to drop about 117.5 M.
 2021 2022 2023 2024 (projected)
Interest Expense3.7M8.4M8.9M9.2M
Depreciation And Amortization88.4M102.2M117.9M91.5M

DigitalOcean Holdings fundamental ratios Correlations

0.980.85-0.7-0.83-0.260.920.910.370.30.30.740.870.580.74-0.370.940.870.870.010.930.830.70.270.860.74
0.980.9-0.69-0.83-0.290.930.890.270.30.340.80.870.630.79-0.360.980.860.910.050.980.810.760.310.910.8
0.850.9-0.72-0.89-0.430.810.80.350.290.360.760.780.640.78-0.420.930.890.980.110.920.760.750.360.990.76
-0.7-0.69-0.720.460.2-0.42-0.370.04-0.850.35-0.17-0.290.03-0.180.87-0.59-0.47-0.820.6-0.6-0.29-0.130.36-0.66-0.17
-0.83-0.83-0.890.460.52-0.86-0.92-0.60.07-0.56-0.85-0.91-0.76-0.850.21-0.89-0.92-0.8-0.42-0.85-0.86-0.84-0.56-0.91-0.85
-0.26-0.29-0.430.20.52-0.37-0.30.080.07-0.14-0.34-0.32-0.24-0.310.32-0.34-0.36-0.31-0.25-0.31-0.28-0.3-0.15-0.42-0.34
0.920.930.81-0.42-0.86-0.370.960.38-0.010.590.910.960.80.91-0.060.960.90.780.330.950.930.890.560.850.91
0.910.890.8-0.37-0.92-0.30.960.6-0.110.650.910.990.840.92-0.010.930.940.760.430.910.970.90.630.850.91
0.370.270.350.04-0.60.080.380.6-0.390.630.450.570.610.520.280.370.630.290.560.310.650.540.640.410.45
0.30.30.29-0.850.070.07-0.01-0.11-0.39-0.71-0.3-0.2-0.47-0.28-0.840.150.00.45-0.910.18-0.16-0.34-0.720.21-0.3
0.30.340.360.35-0.56-0.140.590.650.63-0.710.810.710.940.830.670.510.630.250.910.480.740.861.00.450.81
0.740.80.76-0.17-0.85-0.340.910.910.45-0.30.810.950.950.990.180.890.850.670.620.880.880.990.790.811.0
0.870.870.78-0.29-0.91-0.320.960.990.57-0.20.710.950.880.950.060.920.920.710.510.90.950.940.690.830.95
0.580.630.640.03-0.76-0.240.80.840.61-0.470.940.950.880.970.410.770.830.550.770.740.890.980.930.720.95
0.740.790.78-0.18-0.85-0.310.910.920.52-0.280.830.990.950.970.20.890.890.70.620.880.921.00.820.830.99
-0.37-0.36-0.420.870.210.32-0.06-0.010.28-0.840.670.180.060.410.2-0.22-0.09-0.490.73-0.230.110.250.67-0.330.18
0.940.980.93-0.59-0.89-0.340.960.930.370.150.510.890.920.770.89-0.220.930.910.221.00.890.870.490.950.89
0.870.860.89-0.47-0.92-0.360.90.940.630.00.630.850.920.830.89-0.090.930.850.380.890.970.880.630.920.85
0.870.910.98-0.82-0.8-0.310.780.760.290.450.250.670.710.550.7-0.490.910.85-0.060.910.720.660.240.960.67
0.010.050.110.6-0.42-0.250.330.430.56-0.910.910.620.510.770.620.730.220.38-0.060.180.490.670.920.20.62
0.930.980.92-0.6-0.85-0.310.950.910.310.180.480.880.90.740.88-0.231.00.890.910.180.860.850.450.940.88
0.830.810.76-0.29-0.86-0.280.930.970.65-0.160.740.880.950.890.920.110.890.970.720.490.860.910.720.820.88
0.70.760.75-0.13-0.84-0.30.890.90.54-0.340.860.990.940.981.00.250.870.880.660.670.850.910.850.810.99
0.270.310.360.36-0.56-0.150.560.630.64-0.721.00.790.690.930.820.670.490.630.240.920.450.720.850.450.79
0.860.910.99-0.66-0.91-0.420.850.850.410.210.450.810.830.720.83-0.330.950.920.960.20.940.820.810.450.81
0.740.80.76-0.17-0.85-0.340.910.910.45-0.30.811.00.950.950.990.180.890.850.670.620.880.880.990.790.81
Click cells to compare fundamentals

DigitalOcean Holdings Account Relationship Matchups

DigitalOcean Holdings fundamental ratios Accounts

201920202021202220232024 (projected)
Other Current Liab25.8M50.0M8.8M79.9M96.8M50.4M
Total Current Liabilities72.5M84.8M58.2M164.3M192.6M116.6M
Other Liab3.1M2.3M1.9M22.0M25.3M26.6M
Net Tangible Assets(131.9M)(134.9M)503.1M(381.6M)(438.8M)(416.8M)
Retained Earnings(123.5M)(167.0M)(186.5M)(210.8M)(344.2M)(327.0M)
Accounts Payable27.2M12.4M12.7M21.1M4.0M3.8M
Other Assets3.4M6.0M6.2M9.0M10.4M6.3M
Net Receivables24.0M38.3M39.6M53.8M62.2M43.0M
Other Stockholder Equity(72.0M)(77.9M)(1.3B)264.0M30.5M32.1M
Total Current Assets60.6M148.0M1.8B946.6M503.0M637.8M
Property Plant Equipment178.8M213.5M249.6M273.2M314.1M235.7M

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 together with DigitalOcean Stock

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Moving against DigitalOcean Stock

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  0.8VRNT Verint SystemsPairCorr
  0.69VHAI VHAIPairCorr
  0.64MOGO Mogo IncPairCorr
  0.5VRAR Glimpse GroupPairCorr
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.
Pair CorrelationCorrelation Matching
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:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DigitalOcean Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.
You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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
25.77
Earnings Share
0.72
Revenue Per Share
8.214
Quarterly Revenue Growth
0.133
Return On Assets
0.0442
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.