Akamai Technologies Inc (AKAM)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,826,238	3,733,857	3,652,471	3,620,307	3,608,242	3,585,821	3,548,899	3,483,286	3,407,208	3,348,137	3,281,469	3,224,148	3,146,371	3,072,207	2,995,310	2,915,391	2,862,686	2,803,926	2,760,364	2,716,372
Property, plant and equipment	US$ in thousands	1,825,940	2,670,040	1,746,080	1,654,610	1,540,180	1,520,430	1,541,880	1,579,830	1,534,330	1,543,300	1,538,420	1,511,390	1,478,270	1,383,480	1,281,390	1,180,550	1,152,150	1,079,910	1,019,410	951,259
Fixed asset turnover		2.10	1.40	2.09	2.19	2.34	2.36	2.30	2.20	2.22	2.17	2.13	2.13	2.13	2.22	2.34	2.47	2.48	2.60	2.71	2.86

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,826,238K ÷ $1,825,940K
= 2.10

Akamai Technologies Inc's fixed asset turnover has been relatively consistent in recent quarters, ranging between 2.09 and 2.35. The ratio measures the company's ability to generate revenue from its investment in fixed assets, with a higher ratio indicating a more efficient utilization of fixed assets to generate sales.

The trend in fixed asset turnover for Akamai Technologies Inc shows a slight decline from Q4 2022 to Q1 2023, followed by a relatively stable performance in the subsequent quarters. This suggests that the company may have improved its efficiency in utilizing fixed assets to generate revenue.

Overall, the consistency and relatively high levels of fixed asset turnover indicate that Akamai Technologies Inc is effectively managing and deploying its fixed assets to generate sales, which bodes well for the company's operational efficiency and profitability.