Akamai Technologies Inc (AKAM)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	2,315,170	2,247,480	2,140,970	2,018,420	1,861,750
Revenue	US$ in thousands	3,826,240	3,631,300	3,409,920	3,151,090	2,849,370
Gross profit margin		60.51%	61.89%	62.79%	64.05%	65.34%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,315,170K ÷ $3,826,240K
= 60.51%

The gross profit margin of Akamai Technologies Inc has exhibited a declining trend over the past five years, decreasing from 65.87% in 2019 to 60.36% in 2023. This suggests that the company's ability to generate profits from its core business operations has been eroding gradually. The declining trend in gross profit margin could be attributed to various factors such as increased competition, rising costs of goods sold, or pricing pressures in the industry. It is essential for Akamai Technologies Inc to closely monitor and address the factors contributing to the decline in gross profit margin to ensure sustainable profitability and long-term financial health.