Akamai Technologies Inc (AKAM)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,022,890 | 3,826,240 | 3,631,300 | 3,409,920 | 3,151,090 |
| Receivables | US$ in thousands | 727,687 | 724,302 | 679,206 | 675,926 | 660,052 |
| Receivables turnover | 5.53 | 5.28 | 5.35 | 5.04 | 4.77 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,022,890K ÷ $727,687K
= 5.53
Akamai Technologies Inc's receivables turnover has shown a positive trend over the past five years, increasing from 4.77 in 2020 to 5.53 in 2024. This indicates that the company has been able to collect its accounts receivable more efficiently each year on average. A higher receivables turnover ratio suggests that Akamai is more effective in converting its credit sales into cash, which is a positive sign for the company's liquidity and efficiency in managing its receivables. The consistent improvement in the receivables turnover ratio reflects a sound credit policy, effective collection efforts, and potentially good relationships with customers. Overall, the increasing trend in the receivables turnover ratio indicates that Akamai Technologies Inc is effectively managing its accounts receivable and converting them into cash in a timely manner.
Peer comparison
Dec 31, 2024