Akamai Technologies Inc (AKAM)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,620,790	1,511,060	1,383,820	1,268,960	1,132,670
Payables	US$ in thousands	130,447	146,927	145,420	109,928	118,546
Payables turnover		12.42	10.28	9.52	11.54	9.55

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,620,790K ÷ $130,447K
= 12.42

The payables turnover ratio indicates how efficiently a company is managing its accounts payable by measuring the number of times in a year the company pays off its suppliers. Analyzing the payables turnover ratio for Akamai Technologies Inc over the years from 2020 to 2024 reveals interesting trends.

- In 2020, the payables turnover ratio was 9.55, which means Akamai Technologies Inc paid off its suppliers approximately 9.55 times during that year.
- By the end of 2021, the payables turnover ratio increased to 11.54, indicating an improvement in the company's ability to manage and settle its payables more frequently.
- In 2022, there was a slight decrease in the payables turnover ratio to 9.52, suggesting a potential elongation in the company's payment cycle to suppliers.
- The ratio improved again in 2023 to 10.28, signaling that Akamai Technologies Inc enhanced its payables management practices.
- By the end of 2024, the payables turnover ratio significantly increased to 12.42, showcasing a notable efficiency in settling accounts payable compared to previous years.

Overall, the trend in Akamai Technologies Inc's payables turnover ratio indicates variations in the company's efficiency in managing its accounts payable over the years, with fluctuations in payment frequency and management practices. It is essential to continue monitoring this ratio to ensure effective working capital management and healthy vendor relationships.