Datadog Inc., current ratio, long-term trends, calculation

	Current ratio	=	Current assets¹	÷	Current liabilities¹
Dec 31, 2025	3.38	=	5,382,280)	÷	1,591,401)
Dec 31, 2024	2.64	=	4,911,115)	÷	1,862,713)
Dec 31, 2023	3.17	=	3,178,137)	÷	1,003,052)
Dec 31, 2022	3.09	=	2,344,234)	÷	759,748)
Dec 31, 2021	3.54	=	1,870,948)	÷	528,696)
Dec 31, 2020	5.77	=	1,718,080)	÷	297,844)
Dec 31, 2019	4.51	=	903,942)	÷	200,239)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ US$ in thousands

The current ratio exhibited considerable fluctuation between 2019 and 2025. Initially strong, the ratio experienced a period of decline before stabilizing and showing improvement in the most recent year observed.

Overall Trend: From 2019 to 2020, the current ratio increased significantly, moving from 4.51 to 5.77. This indicates a strengthening of the short-term liquidity position. However, a notable downward trend followed, with the ratio decreasing to 3.09 by 2022. The decline slowed between 2022 and 2024, reaching a low of 2.64. A subsequent increase to 3.38 was observed in 2025.
Key Observations: The highest current ratio was recorded in 2020 at 5.77, suggesting a very comfortable ability to cover short-term obligations with short-term assets. The lowest ratio occurred in 2024 at 2.64, indicating a reduced margin of safety in meeting immediate liabilities. The increase in 2025 suggests a potential recovery in short-term liquidity.
Underlying Components: The increase in the current ratio from 2019 to 2020 was driven by a larger percentage increase in current assets compared to current liabilities. The subsequent decline from 2020 to 2024 was primarily due to a faster rate of growth in current liabilities relative to current assets. The improvement in 2025 was a result of a more substantial increase in current assets, coupled with a decrease in current liabilities.

The observed fluctuations in the current ratio warrant further investigation into the specific components of current assets and current liabilities to understand the underlying drivers of these changes and their potential implications for the company’s short-term financial health.

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Datadog Inc., current ratio, long-term trends, comparison to competitors

	Datadog Inc.	Accenture PLC	Adobe Inc.	AppLovin Corp.	Cadence Design Systems Inc.	CrowdStrike Holdings Inc.	International Business Machines Corp.	Intuit Inc.	Microsoft Corp.	Oracle Corp.	Palantir Technologies Inc.	Palo Alto Networks Inc.	Salesforce Inc.	ServiceNow Inc.	Synopsys Inc.	Workday Inc.
Dec 31, 2025	3.38	1.42	1.00	3.32	2.86	1.77	0.96	1.36	1.35	0.75	7.11	0.94	1.06	1.00	1.62	1.90
Dec 31, 2024	2.64	1.10	1.07	2.19	2.93	1.76	1.04	1.29	1.27	0.72	5.96	0.89	1.09	1.10	2.44	1.97
Dec 31, 2023	3.17	1.30	1.34	1.71	1.24	1.73	0.96	1.47	1.77	0.91	5.55	0.78	1.02	1.06	1.15	1.75
Dec 31, 2022	3.09	1.23	1.11	3.35	1.27	1.83	0.92	1.39	1.78	1.62	5.17	0.77	1.05	1.11	1.09	1.03
Dec 31, 2021	3.54	1.25	1.25	5.05	1.77	2.65	0.88	1.94	2.08	2.30	4.34	0.91	1.23	1.05	1.16	1.12
Dec 31, 2020	5.77	1.40	1.48	—	1.86	2.38	0.98	2.26	2.52	3.03	3.74	1.91	1.08	1.21	1.19	1.04
Dec 31, 2019	4.51	1.40	0.79	—	1.74	—	1.02	1.83	2.53	2.49	—	1.78	0.95	1.03	0.99	1.11