Akamai Technologies Inc (AKAM)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	517,707	489,468	542,337	536,725	352,917
Short-term investments	US$ in thousands	2,148,320	746,985	1,125,290	1,082,040	1,489,450
Total current liabilities	US$ in thousands	2,091,320	836,038	818,868	790,341	758,170
Cash ratio		1.27	1.48	2.04	2.05	2.43

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($517,707K + $2,148,320K) ÷ $2,091,320K
= 1.27

The cash ratio of Akamai Technologies Inc has shown a general downward trend over the past five years. Starting at 2.43 on December 31, 2020, the ratio declined to 1.27 by December 31, 2024. This indicates the company's ability to cover its short-term obligations solely with its cash and cash equivalents has weakened over the period. Although the ratio remains above 1, suggesting the company's ability to meet its immediate liabilities, the decreasing trend calls for attention to the company's liquidity management. Further analysis of the company's cash flow position and potential liquidity risks may be warranted to ensure the sustainability of its financial health.