Akamai Technologies Inc (AKAM)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 637,338 | 676,274 | 783,148 | 658,534 | 548,918 |
| Total assets | US$ in thousands | 9,900,040 | 8,303,400 | 8,138,670 | 7,764,130 | 7,006,890 |
| Operating ROA | 6.44% | 8.14% | 9.62% | 8.48% | 7.83% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $637,338K ÷ $9,900,040K
= 6.44%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate operating profits from its assets. Akamai Technologies Inc's operating ROA has shown a declining trend over the past five years, decreasing from 8.08% in 2019 to 7.01% in 2023. This suggests that the company's efficiency in utilizing its assets to generate operating income has weakened over the period.
Despite the decline, Akamai's operating ROA remains positive, indicating that the company is still able to generate operating profits from its assets. However, the decreasing trend may raise concerns about the company's asset utilization efficiency and could suggest potential challenges in maintaining profitability levels in the future.
It is important for Akamai Technologies Inc to closely monitor and address the factors contributing to the decline in operating ROA to improve operational efficiency and enhance profitability in the long run. Further analysis of the company's operating performance, asset management strategies, and overall business operations may provide insights into improving the operating ROA metric.
Peer comparison
Dec 31, 2023