Akamai Technologies Inc (AKAM)

Working capital 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
Total current assets	US$ in thousands	1,804,860	1,969,560	1,920,430	1,929,530	2,231,610
Total current liabilities	US$ in thousands	836,038	818,868	790,341	758,170	693,336
Working capital turnover		3.95	3.16	3.02	2.69	1.85

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,826,240K ÷ ($1,804,860K – $836,038K)
= 3.95

Akamai Technologies Inc has shown a consistent improvement in its working capital turnover ratio over the past five years. The ratio has increased steadily from 1.88 in 2019 to 3.93 in 2023, indicating that the company has become more efficient in utilizing its working capital to generate revenue. The upward trend in the ratio suggests that Akamai has been able to manage its current assets and liabilities more effectively over the years. This improvement is a positive sign as a higher working capital turnover ratio indicates that the company is able to generate sales from its working capital at a faster rate. Overall, the increasing trend in working capital turnover reflects the company's ability to efficiently manage its operating cycle and optimize its working capital resources.