Akamai Technologies Inc (AKAM)

Net profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	547,629	515,226	478,378	487,402	523,672	555,444	610,666	629,323	651,642	604,478	584,185	589,603	557,054	562,784	542,051	494,051	478,035	452,950	422,643	351,789
Revenue (ttm)	US$ in thousands	3,826,238	3,733,857	3,652,471	3,620,307	3,608,242	3,585,821	3,548,899	3,483,286	3,407,208	3,348,137	3,281,469	3,224,148	3,146,371	3,072,207	2,995,310	2,915,391	2,862,686	2,803,926	2,760,364	2,716,372
Net profit margin		14.31%	13.80%	13.10%	13.46%	14.51%	15.49%	17.21%	18.07%	19.13%	18.05%	17.80%	18.29%	17.70%	18.32%	18.10%	16.95%	16.70%	16.15%	15.31%	12.95%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $547,629K ÷ $3,826,238K
= 14.31%

Net profit margin measures a company's profitability by indicating how much of its revenue translates into profit after all expenses have been deducted. Akamai Technologies Inc's net profit margin has shown fluctuations over the past eight quarters. In the most recent quarter, Q4 2023, the net profit margin was 14.37%, slightly lower than the preceding quarter Q3 2023 (15.04%). Compared to the same quarter in the previous year, Q4 2022, the net profit margin decreased by 1.11%.

The trend over the past eight quarters reflects some variability, with the highest net profit margin of 17.46% observed in Q1 2022 and the lowest of 13.82% in Q1 2023. This indicates that the company's ability to generate profits from its revenue has been somewhat inconsistent. It is essential for investors to track these changes in net profit margin to assess the company's financial performance and sustainability over time.