Akamai Technologies Inc (AKAM)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—
Days of sales outstanding (DSO)	days	69.09	68.27	72.35	76.46	70.70
Number of days of payables	days	35.49	38.36	31.62	38.20	51.35
Cash conversion cycle	days	33.60	29.91	40.73	38.25	19.35

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 69.09 – 35.49
= 33.60

The cash conversion cycle of Akamai Technologies Inc has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle was 33.86 days, which increased compared to the previous year. This indicates that Akamai took longer to convert its investments in inventory and accounts receivable into cash during the year.

In 2022, the cash conversion cycle was 30.19 days, showing an improvement from 2021 when it was 39.66 days. This indicates that in 2022, Akamai was able to manage its working capital more efficiently, resulting in a quicker conversion of inventory and receivables into cash.

In 2021, the cash conversion cycle increased significantly to 39.66 days compared to 2020 when it was 37.13 days. This suggests that Akamai faced challenges in managing its working capital effectively, leading to a slower conversion of assets into cash.

In 2020, the cash conversion cycle was 37.13 days, which was higher than in 2019 when it was 18.27 days. This significant increase shows that Akamai experienced difficulties in converting its investments into cash within the same timeframe during the year.

Overall, Akamai's cash conversion cycle has shown variability over the past five years, indicating fluctuating efficiency in managing its working capital and converting assets into cash. Further analysis of the company's cash conversion cycle trends and underlying factors influencing working capital management would provide more insights into Akamai's financial performance and operational efficiency.