Akamai Technologies Inc (AKAM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,578,100 | 1,804,860 | 1,969,560 | 1,920,430 | 1,929,530 |
| Total current liabilities | US$ in thousands | 2,091,320 | 836,038 | 818,868 | 790,341 | 758,170 |
| Current ratio | 1.23 | 2.16 | 2.41 | 2.43 | 2.54 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,578,100K ÷ $2,091,320K
= 1.23
The current ratio of Akamai Technologies Inc has shown a gradual decline over the past five years. As of December 31, 2020, the company had a current ratio of 2.54, indicating a strong ability to cover its short-term obligations with current assets. However, this ratio decreased to 2.43 by December 31, 2021, and further to 2.41 by December 31, 2022.
The trend took a sharper turn by December 31, 2023, as the current ratio dropped to 2.16, reflecting a potential weakening of the company's liquidity position. The most significant decrease occurred by December 31, 2024, when the current ratio plummeted to 1.23, signaling a potential liquidity challenge for Akamai Technologies Inc.
Overall, the declining trend of the current ratio raises concerns about the company's ability to meet its short-term financial obligations with its current assets. It is essential for Akamai Technologies Inc to closely monitor and manage its liquidity position to ensure financial stability in the future.
Peer comparison
Dec 31, 2024