Akamai Technologies Inc (AKAM)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 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 | 5.19 | 5.43 | 5.27 | 5.13 |
| Payables turnover | 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 | 7.11 | 9.00 | 7.63 | 9.37 |
| Working capital turnover | 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 | 1.86 | 1.70 | 2.39 | 2.18 |
Activity ratios provide insight into how efficiently a company is managing its assets and liabilities to generate sales. Let's analyze Akamai Technologies Inc's activity ratios based on the provided data:
1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company is collecting its accounts receivables.
- Akamai's receivables turnover has been relatively stable, ranging from 4.90 to 5.78 over the past eight quarters.
- A higher turnover ratio indicates that Akamai is collecting its receivables quickly, which is beneficial for cash flow and liquidity.
2. Payables Turnover:
- The payables turnover ratio evaluates how efficiently a company is managing its accounts payable.
- Akamai's payables turnover has ranged from 6.99 to 11.35 in the past eight quarters.
- A higher turnover ratio suggests that Akamai is paying its suppliers promptly, which may reflect good relationships and potential discounts.
3. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales.
- Akamai's working capital turnover has fluctuated between 3.14 and 5.92 in the last eight quarters.
- A higher turnover ratio indicates that Akamai is effectively using its working capital to generate revenue, potentially leading to higher profitability.
4. Inventory Turnover:
- The inventory turnover ratio assesses how efficiently a company is managing its inventory levels.
- Unfortunately, no data is provided for Akamai's inventory turnover in the table, which limits our ability to assess its inventory management efficiency.
Overall, based on the available activity ratios data, Akamai Technologies Inc appears to have stable receivables turnover, varying payables turnover, and fluctuating working capital turnover. Further analysis of inventory turnover would provide a more complete picture of the company's operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 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 | 70.37 | 67.26 | 69.21 | 71.13 |
| Number of days of payables | days | 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 | 51.35 | 40.55 | 47.81 | 38.95 |
Days of Inventory on Hand (DOH) for Akamai Technologies Inc is not provided in the table, which constrains the analysis of this particular activity ratio. However, it is important to note that a low DOH indicates efficient inventory management.
Days of Sales Outstanding (DSO) for Akamai has shown some fluctuation over the quarters, ranging from 63.17 days to 74.49 days. This metric represents the average number of days it takes for the company to collect revenue after a sale. The increase in DSO from Q3 2022 to Q1 2023 could indicate potential challenges in collecting receivables efficiently.
Number of Days of Payables for Akamai has also varied, ranging from 32.16 days to 52.24 days. This ratio indicates the average number of days it takes the company to pay its suppliers. A decrease in this ratio is generally positive as it signifies that Akamai is taking longer to pay its bills, potentially improving cash flow management.
Overall, the analysis of Akamai Technologies Inc's activity ratios suggests room for improvement in managing inventory, maintaining stable collection periods, and optimizing payment cycles to enhance overall operational efficiency and liquidity.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 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 | 0.41 | 0.44 | 0.52 | 0.52 |
Akamai Technologies Inc has shown consistency in its fixed asset turnover ratio over the past eight quarters, with the ratio ranging from 2.09 to 2.36. This indicates that the company is generating revenue efficiently from its fixed assets, as a higher ratio implies better utilization of these assets to generate sales. The decrease in the fixed asset turnover ratio from Q4 2022 to Q4 2023 may indicate a slight decrease in efficiency in utilizing fixed assets to generate revenue.
Regarding total asset turnover, Akamai Technologies Inc has maintained a relatively stable ratio between 0.39 and 0.44 over the same period. The total asset turnover ratio represents the company's ability to generate revenue from its total assets, including both fixed and current assets. A higher total asset turnover ratio signifies better efficiency in utilizing all assets to generate sales.
Overall, the analysis of Akamai Technologies Inc's long-term activity ratios indicates that the company has been proficient in using both fixed and total assets to generate revenue, with fluctuations occurring within an acceptable range. It is important for the company to continue monitoring and optimizing asset utilization to maintain or improve its efficiency in generating revenue.