Akamai Technologies Inc (AKAM)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 66.02 | 69.09 | 68.27 | 72.35 | 76.46 |
| Number of days of payables | days | 29.38 | 35.49 | 38.36 | 31.62 | 38.20 |
| Cash conversion cycle | days | 36.65 | 33.60 | 29.91 | 40.73 | 38.25 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 66.02 – 29.38
= 36.65
The cash conversion cycle of Akamai Technologies Inc has shown fluctuations over the years, indicating changes in the efficiency of its working capital management.
As of December 31, 2020, the cash conversion cycle stood at 38.25 days, reflecting the number of days it takes for the company to convert its investments in inventory and accounts receivable into cash.
By December 31, 2021, the cash conversion cycle increased to 40.73 days, suggesting a slight delay in converting its resources into cash compared to the previous year.
However, the company improved its efficiency by lowering the cash conversion cycle to 29.91 days by December 31, 2022. This significant reduction indicates a positive trend in working capital management.
In the following years, the cash conversion cycle slightly increased to 33.60 days by December 31, 2023, and further to 36.65 days by December 31, 2024. These increases indicate a longer time for the company to convert its investments into cash, which may require attention in managing working capital effectively.
Overall, the trend in Akamai Technologies Inc's cash conversion cycle shows variations over the years, emphasizing the importance of continuously monitoring and optimizing working capital efficiency to ensure liquidity and operational effectiveness.
Peer comparison
Dec 31, 2024