Akamai Technologies Inc (AKAM)

Quick ratio

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 US$ in thousands 517,707 569,749 448,042 467,717 489,468 459,907 298,612 298,800 542,337 457,816 426,710 377,811 536,725 1,264,590 581,068 456,799 352,917 742,521 572,288 384,103
Short-term investments US$ in thousands 2,148,320 2,249,370 2,370,800 2,408,150 746,985 954,678 983,573 905,903 1,125,290 406,332 263,979 129,058 1,082,040 1,304,620 1,670,510 1,662,080 1,489,450 701,515 800,321 865,168
Receivables US$ in thousands 727,687 696,493 699,258 716,638 724,302 713,382 698,445 705,817 679,206 622,027 668,425 718,793 675,926 660,092 656,609 666,536 660,052 630,406 644,659 613,809
Total current liabilities US$ in thousands 2,091,320 1,983,020 1,945,880 808,938 836,038 810,491 860,774 836,253 818,868 753,011 817,084 869,265 790,341 731,440 647,449 715,131 758,170 717,124 657,422 630,247
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

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 measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its short-term liabilities.

For Akamai Technologies Inc, the quick ratio has fluctuated over the past few years. It increased steadily from March 2020 to June 2021, reaching a high of 4.49. This indicates that the company had a strong ability to cover its short-term obligations during this period.

However, from September 2021 to March 2023, the quick ratio declined, indicating a potential decrease in the company's ability to cover its short-term liabilities with its current liquid assets.

In the most recent periods, the quick ratio has shown some volatility, with a peak of 4.44 in March 2024 followed by a significant drop to 1.62 in December 2024. This suggests that Akamai Technologies Inc may have experienced fluctuations in its liquidity position during these quarters.

Overall, while the company has shown periods of strong liquidity based on the quick ratio, investors and analysts should closely monitor the trend in the quick ratio to assess Akamai Technologies Inc's short-term liquidity position and financial health.