Akamai Technologies Inc (AKAM)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,804,860	1,969,560	1,920,430	1,929,530	2,231,610
Total current liabilities	US$ in thousands	836,038	818,868	790,341	758,170	693,336
Current ratio		2.16	2.41	2.43	2.54	3.22

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,804,860K ÷ $836,038K
= 2.16

The current ratio of Akamai Technologies Inc has shown a downward trend over the past five years, decreasing from 3.22 in 2019 to 2.16 in 2023. This indicates a decline in the company's short-term liquidity position and ability to cover its current liabilities with its current assets.

Although the current ratio has decreased, the company's current ratio remains above 1, indicating that Akamai Technologies Inc still has more than enough current assets to cover its current liabilities. A current ratio above 1 is generally considered favorable as it implies that the company is able to meet its short-term obligations.

However, the decreasing trend in the current ratio over the years may raise concerns about the company's ability to maintain its liquidity position in the short term. It is important for investors and stakeholders to closely monitor Akamai Technologies Inc's current ratio and its underlying components to assess the company's financial health and ability to meet its short-term obligations.