Akamai Technologies Inc (AKAM)

Liquidity ratios

	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
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
Quick ratio	1.62	1.77	1.81	4.44	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
Cash ratio	1.27	1.42	1.45	3.56	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

Akamai Technologies Inc's liquidity ratios indicate its ability to meet short-term obligations and manage cash flow effectively.

1. Current Ratio: It shows the company's ability to pay its short-term liabilities with its short-term assets. Akamai had a current ratio above 1 throughout the reported periods, indicating the company had more than enough current assets to cover its current liabilities. The current ratio peaked in September 2021 at 3.78 but decreased to 2.16 by December 2023 before recovering to 3.25 in March 2024.

2. Quick Ratio: This ratio is a more stringent test of liquidity as it excludes inventory from current assets. Akamai's quick ratio also remained above 1 in all periods, demonstrating its ability to cover short-term obligations with its most liquid assets. The quick ratio peaked in June 2021 at 4.49, reflecting a strong ability to meet immediate obligations, and decreased to 1.62 by December 2024.

3. Cash Ratio: This ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. Akamai had a cash ratio above 1 in most periods, reflecting a solid ability to pay off immediate obligations with its cash reserves. The highest cash ratio was in September 2021 at 3.51, indicating a strong cash position, while the ratio dipped to 1.27 by December 2024.

Overall, Akamai maintained healthy liquidity levels over the reported periods but experienced some fluctuations in its liquidity ratios. It is essential for the company to monitor its liquidity position closely to ensure it can meet its short-term obligations efficiently.

Additional liquidity measure

		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
Cash conversion cycle	days	36.76	39.47	35.90	35.36	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

The cash conversion cycle of Akamai Technologies Inc has shown fluctuations over the periods presented. The cash conversion cycle represents the time taken by a company to convert its investments in inventory and other resources into cash flow from sales.

From March 31, 2020, to September 30, 2021, the cash conversion cycle ranged between 25.04 days to 44.93 days, indicating some variability in the efficiency of Akamai's working capital management during this period.

However, from March 31, 2022, to December 31, 2024, the cash conversion cycle has shown a decreasing trend, ranging from 18.92 days to 39.47 days. This decrease can be seen as a positive sign as it suggests improved efficiency in managing working capital, resulting in a quicker conversion of investments into cash.

Overall, the trend of the cash conversion cycle for Akamai Technologies Inc indicates efforts to enhance working capital efficiency and manage cash flows more effectively over the periods analyzed.