Akamai Technologies Inc (AKAM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 517,707 | 489,468 | 542,337 | 536,725 | 352,917 |
| Short-term investments | US$ in thousands | 2,148,320 | 746,985 | 1,125,290 | 1,082,040 | 1,489,450 |
| Receivables | US$ in thousands | 727,687 | 724,302 | 679,206 | 675,926 | 660,052 |
| Total current liabilities | US$ in thousands | 2,091,320 | 836,038 | 818,868 | 790,341 | 758,170 |
| Quick ratio | 1.62 | 2.35 | 2.87 | 2.90 | 3.30 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($517,707K
+ $2,148,320K
+ $727,687K)
÷ $2,091,320K
= 1.62
The quick ratio of Akamai Technologies Inc has shown a decreasing trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at a relatively high level of 3.30 in 2020, the quick ratio gradually decreased to 1.62 by the end of 2024.
A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities. Despite the decreasing trend, Akamai's quick ratio stayed above 1 throughout the period, suggesting that the company had a comfortable margin of safety to meet its short-term financial obligations.
However, the declining trend in the quick ratio may signal that Akamai's liquidity position has weakened over time. It is important for the company to monitor and potentially improve its ability to meet short-term obligations in the future to ensure financial stability and resilience.
Peer comparison
Dec 31, 2024