Akamai Technologies Inc (AKAM)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	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	2,231,610	2,253,910	1,744,790	1,818,420
Total current liabilities	US$ in thousands	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	693,336	602,523	590,814	569,706
Current ratio		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	3.22	3.74	2.95	3.19

December 31, 2023 calculation

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

Akamai Technologies Inc's current ratio has exhibited fluctuations over the past eight quarters, ranging from a low of 1.68 in Q1 2022 to a high of 2.41 in Q4 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.

In the most recent quarter, Q4 2023, Akamai's current ratio stood at 2.16, indicating that the company had $2.16 in current assets for every $1 in current liabilities. This suggests a strong liquidity position, as the current ratio is above 2, which is generally considered a healthy level.

However, it is important to note the trend in the current ratio over time. The ratio has been fluctuating, which could signal changes in the company's liquidity management or operating efficiency. The decrease from Q3 2023 to Q4 2023, from 2.30 to 2.16, may warrant further investigation into the company's asset and liability management.

Overall, while Akamai Technologies Inc's current ratio indicates a strong liquidity position in Q4 2023, analysts and stakeholders should continue to monitor the trend over time to assess the company's ongoing ability to meet its short-term obligations.