Akamai Technologies Inc (AKAM)
Working capital 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 |
| Total current assets | US$ in thousands | 2,578,100 | 1,804,860 | 1,969,560 | 1,920,430 | 1,929,530 |
| Total current liabilities | US$ in thousands | 2,091,320 | 836,038 | 818,868 | 790,341 | 758,170 |
| Working capital turnover | 8.26 | 3.95 | 3.16 | 3.02 | 2.69 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,022,890K ÷ ($2,578,100K – $2,091,320K)
= 8.26
The working capital turnover for Akamai Technologies Inc has shown a positive trend over the years, indicating an improvement in the company's efficiency in managing its working capital. The ratio increased from 2.69 in December 31, 2020, to 8.26 in December 31, 2024, which signifies that the company generated $8.26 in net sales revenue for every dollar of working capital invested.
This upward trend reflects a more efficient utilization of working capital by the company, suggesting that Akamai Technologies has been able to generate higher sales relative to its working capital base. A higher working capital turnover ratio is generally favorable as it signifies that the company is effectively managing its current assets and liabilities to generate sales.
The increasing trend in the working capital turnover suggests that Akamai Technologies Inc has been able to optimize its working capital management practices, potentially leading to improved liquidity and operational efficiency. This enhanced efficiency in working capital utilization bodes well for the company's financial health and overall performance.
Peer comparison
Dec 31, 2024