Akamai Technologies Inc (AKAM)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,022,890 | 3,826,240 | 3,631,300 | 3,409,920 | 3,151,090 |
| Property, plant and equipment | US$ in thousands | 1,995,070 | 1,825,940 | 1,540,180 | 1,534,330 | 1,478,270 |
| Fixed asset turnover | 2.02 | 2.10 | 2.36 | 2.22 | 2.13 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,022,890K ÷ $1,995,070K
= 2.02
The fixed asset turnover ratio of Akamai Technologies Inc has shown a generally improving trend over the period from December 31, 2020, to December 31, 2024. The ratio increased from 2.13 in 2020 to 2.22 in 2021, further rising to 2.36 in 2022, suggesting that the company generated $2.36 in revenue for every dollar invested in fixed assets during that year.
However, there was a slight decline in 2023, with the ratio decreasing to 2.10, followed by a more noticeable decrease to 2.02 in 2024. This indicates that in these years, the efficiency of utilizing fixed assets to generate revenue slightly weakened.
Overall, the upward trajectory of the fixed asset turnover ratio from 2020 to 2022 is a positive sign of improved asset utilization efficiency. However, the recent decline in 2023 and 2024 may warrant further investigation to understand the factors impacting the company's fixed asset turnover and sustainability of this metric over time.
Peer comparison
Dec 31, 2024