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.
Peer comparison
Dec 31, 2023