Akamai Technologies Inc (AKAM)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	489,468	542,337	536,725	352,917	393,745
Short-term investments	US$ in thousands	746,985	1,125,290	1,082,040	1,489,450	2,286,260
Total current liabilities	US$ in thousands	836,038	818,868	790,341	758,170	693,336
Cash ratio		1.48	2.04	2.05	2.43	3.87

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($489,468K + $746,985K) ÷ $836,038K
= 1.48

The cash ratio of Akamai Technologies Inc has experienced a declining trend over the past five years, decreasing from 2.42 in 2019 to 1.29 in 2023. This indicates that the company has less cash and cash equivalents relative to its current liabilities in recent years. A cash ratio of less than 1 would suggest that the company may have difficulties meeting its short-term obligations solely with cash on hand. It is important to monitor this ratio closely as it may indicate liquidity challenges for the company.