Akamai Technologies Inc (AKAM)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,826,240	3,631,300	3,409,920	3,151,090	2,849,370
Receivables	US$ in thousands	724,302	679,206	675,926	660,052	551,943
Receivables turnover		5.28	5.35	5.04	4.77	5.16

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $3,826,240K ÷ $724,302K
= 5.28

Akamai Technologies Inc's receivables turnover has exhibited fluctuating trends over the past five years, ranging from 4.85 to 5.32 times. The receivables turnover ratio measures the efficiency of the company in collecting outstanding receivables from its customers during a specific period. A higher receivables turnover ratio indicates that the company is collecting receivables more quickly, which is generally preferable as it reduces the risk of bad debts and improves cash flow.

In the case of Akamai Technologies Inc, its receivables turnover has been relatively stable, with the ratio hovering around 5 times. This suggests that the company has been efficient in managing its accounts receivable and converting them into cash. A consistent receivables turnover ratio indicates that the company has a solid credit policy in place, effectively managing its credit extension and collection processes.

Overall, the trend in Akamai Technologies Inc's receivables turnover ratio reflects sound credit management practices and a healthy liquidity position. However, it is essential for the company to continue monitoring this ratio to ensure timely collections and maintain a strong cash flow position.