Akamai Technologies Inc (AKAM)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 547,629 | 523,672 | 651,642 | 557,054 | 478,035 |
| Revenue | US$ in thousands | 3,826,240 | 3,631,300 | 3,409,920 | 3,151,090 | 2,849,370 |
| Net profit margin | 14.31% | 14.42% | 19.11% | 17.68% | 16.78% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $547,629K ÷ $3,826,240K
= 14.31%
Net profit margin is a key financial ratio that indicates the percentage of revenue that translates into net income after accounting for all expenses. In the case of Akamai Technologies Inc, the net profit margin has shown some fluctuations over the past five years.
From 2019 to 2021, the company saw an upward trend in net profit margin, reaching a peak of 18.83% in 2021. This increase indicates that Akamai Technologies Inc was able to effectively control its expenses and generate higher profits relative to its revenue during this period.
However, in 2022 and 2023, the net profit margin slightly decreased to 14.48% and 14.37% respectively. This decline may suggest that the company experienced challenges in maintaining profitability or faced increased costs that impacted its bottom line.
Overall, while Akamai Technologies Inc has historically demonstrated relatively healthy net profit margins, investors and stakeholders should closely monitor any fluctuations in this ratio to assess the company's efficiency in managing its costs and generating profits.
Peer comparison
Dec 31, 2023