Akamai Technologies Inc (AKAM)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,511,060	1,383,820	1,268,960	1,132,670	987,624
Payables	US$ in thousands	146,927	145,420	109,928	118,546	138,946
Payables turnover		10.28	9.52	11.54	9.55	7.11

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,511,060K ÷ $146,927K
= 10.28

Akamai Technologies Inc's payables turnover has shown a fluctuating trend over the past five years. The payables turnover ratio measures how efficiently a company is managing its trade payables by indicating how many times during a period the company pays off its suppliers.

The payables turnover ratio has ranged from a low of 7.11 in 2019 to a high of 11.54 in 2021. This indicates that in 2019, Akamai was taking longer to pay off its suppliers compared to the other years in consideration. However, the ratio improved in subsequent years, reaching its peak in 2021, suggesting a more efficient management of payables during that year.

Overall, the increasing trend in the payables turnover ratio from 2019 to 2021 indicates that Akamai Technologies Inc has been managing its payables more effectively and paying off its suppliers at a faster rate during those years. This can be seen as a positive sign of financial health and operational efficiency.