Akamai Technologies Inc (AKAM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 489,468 | 542,337 | 536,725 | 352,917 | 393,745 |
| Short-term investments | US$ in thousands | 746,985 | 1,125,290 | 1,082,040 | 1,489,450 | 2,286,260 |
| Receivables | US$ in thousands | 724,302 | 679,206 | 675,926 | 660,052 | 551,943 |
| Total current liabilities | US$ in thousands | 836,038 | 818,868 | 790,341 | 758,170 | 693,336 |
| Quick ratio | 2.35 | 2.87 | 2.90 | 3.30 | 4.66 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($489,468K
+ $746,985K
+ $724,302K)
÷ $836,038K
= 2.35
The quick ratio of Akamai Technologies Inc has shown a declining trend over the past five years, from 3.22 in 2019 to 2.16 in 2023.
A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its short-term liabilities. In this case, Akamai Technologies Inc has consistently maintained a quick ratio above 1 in all the years analyzed, indicating a relatively strong liquidity position.
However, the decreasing trend in the quick ratio implies that the company may be becoming less capable of meeting its short-term obligations using its most liquid assets. Investors and stakeholders should monitor this trend closely to ensure that the company's liquidity position remains healthy and sustainable over time.
Peer comparison
Dec 31, 2023