Akamai Technologies Inc (AKAM)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 5.52 | 5.72 | 5.64 | 5.43 | 5.28 | 5.23 | 5.23 | 5.13 | 5.31 | 5.76 | 5.31 | 4.85 | 5.04 | 5.07 | 5.00 | 4.84 | 4.77 | 4.87 | 4.65 | 4.75 |
| Payables turnover | 12.42 | 15.00 | 12.64 | 11.47 | 10.28 | 10.21 | 7.40 | 6.99 | 9.52 | 11.35 | 10.04 | 10.53 | 11.54 | 12.69 | 12.99 | 9.80 | 9.55 | 9.46 | 6.82 | 8.90 |
| Working capital turnover | 8.25 | 6.12 | 6.31 | 2.14 | 3.95 | 3.53 | 4.26 | 4.20 | 3.14 | 3.80 | 4.74 | 5.85 | 3.01 | 1.65 | 2.04 | 2.23 | 2.69 | 2.01 | 1.95 | 2.11 |
Akamai Technologies Inc's activity ratios provide insights into how effectively the company manages its assets and liabilities.
1. Receivables turnover: This ratio indicates how many times a company collects its accounts receivable during a period. Akamai's receivables turnover has been increasing steadily over the years, from 4.75 in March 2020 to 5.52 in December 2024. This suggests that the company has been improving its efficiency in collecting payments from customers.
2. Payables turnover: The payables turnover ratio reflects how efficiently a company pays its suppliers. Akamai's payables turnover has fluctuated over the years but generally remained within a reasonable range. The ratio decreased significantly in March 2023 but recovered in subsequent periods. A higher turnover indicates that the company is managing its payables well.
3. Working capital turnover: This ratio measures how efficiently a company utilizes its working capital to generate sales. Akamai's working capital turnover has shown significant fluctuations, indicating varying levels of efficiency in utilizing its working capital. The ratio spiked to 8.25 in December 2024, implying that the company generated significant sales relative to its working capital.
Overall, Akamai Technologies Inc's activity ratios demonstrate improvements in managing receivables and payables over the years, with some fluctuations in working capital turnover. Monitoring these ratios can provide valuable insights into the company's operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 66.14 | 63.80 | 64.77 | 67.18 | 69.09 | 69.74 | 69.80 | 71.16 | 68.71 | 63.32 | 68.75 | 75.32 | 72.41 | 71.96 | 73.04 | 75.46 | 76.57 | 74.90 | 78.56 | 76.85 |
| Number of days of payables | days | 29.38 | 24.33 | 28.87 | 31.83 | 35.49 | 35.73 | 49.33 | 52.24 | 38.36 | 32.16 | 36.36 | 34.65 | 31.62 | 28.76 | 28.10 | 37.24 | 38.20 | 38.58 | 53.51 | 41.01 |
Akamai Technologies Inc's activity ratios show how efficiently the company manages its inventory, collects receivables, and pays its suppliers.
The Days of Sales Outstanding (DSO) decreased from 76.85 days as of March 31, 2020, to 66.14 days as of December 31, 2024. This trend indicates an improvement in the company's ability to collect payments from customers more quickly over the years.
In contrast, the Number of Days of Payables decreased from 41.01 days as of March 31, 2020, to 29.38 days as of December 31, 2024. This decrease suggests that Akamai Technologies Inc is taking slightly longer to pay its suppliers, which may indicate a more conservative cash flow management approach.
The Days of Inventory on Hand data is not available, indicating that the company's inventory turnover is not detailed in the provided information. Without this data, it's challenging to assess how efficiently Akamai manages its inventory in the production and sales process.
Overall, based on the information provided, Akamai Technologies Inc has shown improvement in its collection of receivables, although it appears to be extending the payment period to its suppliers.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 2.01 | — | — | — | 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 |
| Total asset turnover | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.44 | 0.44 | 0.43 | 0.44 | 0.43 | 0.42 | 0.42 | 0.41 | 0.41 | 0.41 | 0.41 | 0.41 | 0.41 | 0.42 |
The Fixed Asset Turnover ratio for Akamai Technologies Inc has exhibited a fluctuating trend over the past few years. It started at 2.47 in March 2020, gradually declined to 1.40 by September 2023, and then slightly recovered to 2.10 by December 2023. However, the ratio dropped again to 2.09 by June 2024 and remained stable in the subsequent quarters.
The Total Asset Turnover ratio, on the other hand, has shown a relatively stable pattern with minor fluctuations. It ranged from 0.41 to 0.44 between March 2020 and December 2023, indicating consistent efficiency in generating sales revenue relative to total assets. However, there was a slight decline to 0.39 by March 2024, which continued throughout the remaining quarters of the year.
Overall, while the Fixed Asset Turnover ratio reflects variability in the company's ability to generate sales from fixed assets, the Total Asset Turnover ratio suggests a generally stable performance in utilizing total assets to generate revenue over the analyzed period.