Akamai Technologies Inc (AKAM)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	533,411	637,338	676,274	783,148	658,534
Revenue	US$ in thousands	4,022,890	3,826,240	3,631,300	3,409,920	3,151,090
Operating profit margin		13.26%	16.66%	18.62%	22.97%	20.90%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $533,411K ÷ $4,022,890K
= 13.26%

The operating profit margin of Akamai Technologies Inc has shown mixed trends over the years. In 2020, the margin stood at 20.90%, indicating that for every dollar of sales, the company generated a profit of $0.209 before interest and taxes. The following year, the margin improved to 22.97%, reflecting an enhanced efficiency in managing operating expenses and generating profits.

However, in 2022, the operating profit margin decreased to 18.62%, suggesting a decline in profitability relative to sales. This could be a result of increased operating costs or a slowdown in revenue growth. The trend continued in 2023, with the margin further declining to 16.66%, indicating a continued challenge in maintaining profitability levels.

By the end of 2024, the operating profit margin dropped notably to 13.26%, signaling a significant decrease in the company's profitability compared to the previous years. This sharp decline may raise concerns about the company's operational efficiency and effectiveness in controlling costs.

Overall, Akamai Technologies Inc's operating profit margin has experienced fluctuations, with periods of improvement followed by declines. It would be crucial for the company to closely monitor its cost structure, revenue generation, and operational processes to sustain and enhance its profitability levels in the future.