Akamai Technologies Inc (AKAM)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 2.35 | 2.63 | 2.30 | 2.28 | 2.87 | 1.97 | 1.66 | 1.41 | 2.90 | 4.41 | 4.49 | 3.89 | 3.30 | 2.89 | 3.07 | 2.96 | 4.66 | 3.46 | 2.65 | 2.89 |
| Cash ratio | 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 | 3.87 | 2.61 | 1.76 | 1.96 |
Akamai Technologies Inc has shown consistent liquidity strength over the quarters, as indicated by its current ratio consistently above 2. This implies that the company has more than enough current assets to cover its short-term liabilities. The quick ratio, which excludes inventory from current assets, also mirrors the current ratio, further affirming Akamai's ability to meet its short-term obligations promptly.
The cash ratio, although lower than the current and quick ratios, shows that Akamai has a satisfactory level of cash to cover its immediate liabilities. The gradual increase in the cash ratio over the quarters reflects a positive trend in Akamai's cash position, indicating an improved ability to settle short-term obligations using readily available cash.
Overall, Akamai Technologies Inc's liquidity ratios demonstrate strong financial health and the company's ability to meet its short-term financial obligations comfortably.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 33.60 | 34.00 | 20.46 | 18.92 | 30.35 | 31.16 | 32.39 | 40.67 | 40.79 | 43.20 | 44.93 | 38.21 | 38.37 | 36.32 | 25.04 | 35.84 | 19.02 | 26.70 | 21.40 | 32.18 |
The cash conversion cycle (CCC) of Akamai Technologies Inc has shown fluctuations over the past eight quarters. In Q1 2022, the company had a CCC of 39.84 days, which gradually decreased to 18.76 days by Q1 2023, indicating an improvement in managing its cash conversion cycle efficiency.
However, in Q2 2023, there was a sudden increase in the CCC to 20.30 days, followed by another slight uptick to 33.80 days in Q3 2023. This suggests that Akamai may have faced challenges in converting its investments in inventory and accounts receivable into cash efficiently during these periods.
Despite the fluctuations, the overall trend of the CCC for Akamai Technologies Inc seems to have stabilized around the range of 30-35 days in the recent quarters, indicating that the company is maintaining a relatively stable cash conversion process.
Further analysis of the components contributing to the CCC, such as inventory turnover, accounts receivable turnover, and accounts payable turnover, would provide insights into specific areas that may require attention to further optimize Akamai's cash conversion cycle efficiency.