Akamai Technologies Inc (AKAM)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	3,826,238	3,733,857	3,652,471	3,620,307	3,608,242	3,585,821	3,548,899	3,483,286	3,407,208	3,348,137	3,281,469	3,224,148	3,146,371	3,072,207	2,995,310	2,915,391	2,862,686	2,803,926	2,760,364	2,716,372
Total current assets	US$ in thousands	1,804,860	1,867,380	1,718,470	1,697,710	1,969,560	1,695,570	1,566,160	1,464,480	1,920,430	2,761,880	2,253,250	2,161,400	1,929,530	2,243,220	2,193,000	2,014,580	2,231,610	2,253,910	1,744,790	1,818,420
Total current liabilities	US$ in thousands	836,038	810,491	860,774	836,253	818,868	753,011	817,084	869,265	790,341	731,440	647,449	715,131	758,170	717,124	657,422	630,247	693,336	602,523	590,814	569,706
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,826,238K ÷ ($1,804,860K – $836,038K)
= 3.95

Akamai Technologies Inc's working capital turnover over the past eight quarters has shown fluctuations, indicating variations in the efficiency of the company in generating revenue from its working capital. The working capital turnover ratios ranged from a low of 3.14 in Q4 2022 to a high of 5.92 in Q1 2022.

In general, a higher working capital turnover ratio suggests that the company is more efficient in utilizing its working capital to generate sales revenue. Q1 2022 stood out as the most efficient quarter with a working capital turnover of 5.92, indicating that Akamai Technologies was able to convert its working capital into sales revenue nearly six times during that period.

Conversely, the lowest turnover ratio of 3.14 in Q4 2022 suggests a lower efficiency in utilizing working capital to generate revenue during that quarter. However, it is important to note that a single quarter's performance should be assessed in the context of overall trends and industry benchmarks.

Overall, the variations in working capital turnover ratios for Akamai Technologies Inc indicate fluctuations in the company's operational efficiency in managing its working capital to generate sales revenue. An in-depth analysis incorporating additional financial metrics and contextual information would provide a more comprehensive understanding of the company's financial performance.