Akamai Technologies Inc (AKAM)

Current 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
Total current assets	US$ in thousands	2,578,100	2,634,430	2,570,460	2,625,180	1,804,860	1,867,380	1,718,470	1,697,710	1,969,560	1,695,570	1,566,160	1,464,480	1,920,430	2,761,880	2,253,250	2,161,400	1,929,530	2,243,220	2,193,000	2,014,580
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
Current ratio		1.23	1.33	1.32	3.25	2.16	2.30	2.00	2.03	2.41	2.25	1.92	1.68	2.43	3.78	3.48	3.02	2.54	3.13	3.34	3.20

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,578,100K ÷ $2,091,320K
= 1.23

Akamai Technologies Inc's current ratio has displayed fluctuations over the provided periods. The current ratio is a measure of a company's ability to cover its short-term liabilities with its short-term assets.

From March 31, 2020, to June 30, 2021, the current ratio consistently remained above 3, indicating a healthy level of liquidity to cover short-term obligations. However, the ratio started to decline from December 31, 2021, reaching the lowest point of 1.32 on June 30, 2024.

Although there was a significant drop in the current ratio in the latter half of 2024, there was a slight improvement by December 31, 2024, with a ratio of 1.23. This suggests that Akamai may be facing some challenges in managing its short-term obligations efficiently during this period.

Overall, fluctuations in the current ratio signal changes in the company's liquidity position and warrant a closer examination of Akamai's short-term financial health and management of working capital.