Akamai Technologies Inc (AKAM)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	517,707	569,749	448,042	467,717	489,468	459,907	298,612	298,800	542,337	457,816	426,710	377,811	536,725	1,264,590	581,068	456,799	352,917	742,521	572,288	384,103
Short-term investments	US$ in thousands	2,148,320	2,249,370	2,370,800	2,408,150	746,985	954,678	983,573	905,903	1,125,290	406,332	263,979	129,058	1,082,040	1,304,620	1,670,510	1,662,080	1,489,450	701,515	800,321	865,168
Total current liabilities	US$ in thousands	2,091,320	1,983,020	1,945,880	808,938	836,038	810,491	860,774	836,253	818,868	753,011	817,084	869,265	790,341	731,440	647,449	715,131	758,170	717,124	657,422	630,247
Cash ratio		1.27	1.42	1.45	3.56	1.48	1.75	1.49	1.44	2.04	1.15	0.85	0.58	2.05	3.51	3.48	2.96	2.43	2.01	2.09	1.98

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 fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

The trend in the cash ratio shows an increasing pattern from March 31, 2020, to March 31, 2021, indicating an improvement in the company's liquidity position. The ratio reached its peak at 3.56 on March 31, 2024, indicating that Akamai had $3.56 in cash and cash equivalents for every $1 of current liabilities.

However, there was a notable decline in the cash ratio from March 31, 2021, to June 30, 2022, and again from December 31, 2022, to March 31, 2023, which may suggest potential challenges in managing short-term obligations using available cash resources.

It is important to note that a very high cash ratio may indicate an inefficient utilization of resources, while a very low cash ratio may signal potential liquidity issues. Therefore, Akamai Technologies Inc should continue to monitor its cash position closely to ensure it can meet its short-term financial obligations while achieving optimal utilization of its cash resources.