Akamai Technologies Inc (AKAM)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 66.14 | 63.80 | 64.77 | 67.18 | 69.09 | 69.74 | 69.80 | 71.16 | 68.71 | 63.32 | 68.75 | 75.32 | 72.41 | 71.96 | 73.04 | 75.46 | 76.57 | 74.90 | 78.56 | 76.85 |
| Number of days of payables | days | 29.38 | 24.33 | 28.87 | 31.83 | 35.49 | 35.73 | 49.33 | 52.24 | 38.36 | 32.16 | 36.36 | 34.65 | 31.62 | 28.76 | 28.10 | 37.24 | 38.20 | 38.58 | 53.51 | 41.01 |
| Cash conversion cycle | days | 36.76 | 39.47 | 35.90 | 35.36 | 33.60 | 34.00 | 20.46 | 18.92 | 30.35 | 31.16 | 32.39 | 40.67 | 40.79 | 43.20 | 44.93 | 38.21 | 38.37 | 36.32 | 25.04 | 35.84 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 66.14 – 29.38
= 36.76
The cash conversion cycle of Akamai Technologies Inc has shown some fluctuations over the observed periods. It measures the average number of days it takes for a company to convert its resources, such as inventory and accounts payable, into cash.
From March 31, 2020, to December 31, 2024, the cash conversion cycle fluctuated between a low of 18.92 days to a high of 44.93 days. A lower number indicates a faster cycle, meaning the company is able to convert its resources into cash more quickly.
During the analyzed periods, Akamai Technologies Inc exhibited varying efficiencies in managing its working capital, as indicated by changes in the cash conversion cycle. An increasing cycle could suggest inefficiencies in collecting receivables, managing inventory, or paying suppliers. Conversely, a decreasing cycle may indicate improvements in these areas.
Overall, a thorough analysis of the components contributing to the cash conversion cycle, such as accounts receivable turnover, inventory turnover, and accounts payable turnover, is needed to fully understand the company's working capital management efficiency and its impact on its liquidity and operating performance.
Peer comparison
Dec 31, 2024