Akamai Technologies Inc (AKAM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 10,368,800 | 9,900,040 | 8,303,400 | 8,138,670 | 7,764,130 |
| Operating ROA | 5.14% | 6.44% | 8.14% | 9.62% | 8.48% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $533,411K ÷ $10,368,800K
= 5.14%
The operating return on assets (Operating ROA) for Akamai Technologies Inc has varied over the years based on the provided data.
- As of December 31, 2020, the company's Operating ROA was 8.48%, indicating that for every dollar of assets, the company generated 8.48 cents of operating income.
- By December 31, 2021, Akamai's Operating ROA improved to 9.62%, suggesting enhanced efficiency in generating operating profits from its assets.
- However, by December 31, 2022, the Operating ROA declined to 8.14%, signifying a decrease in the company's ability to generate operating income relative to its assets.
- The downward trend continued into December 31, 2023, with the Operating ROA dropping further to 6.44%, indicating a weakening performance in utilizing assets to generate operating returns.
- As of December 31, 2024, the company's Operating ROA decreased to 5.14%, highlighting a continued decline in the efficiency of utilizing assets to generate operating profits.
Overall, the trend in Akamai Technologies Inc's Operating ROA shows fluctuations with periods of improvement followed by declines. It is important for the company to focus on optimizing asset utilization to improve operational efficiency and maximize returns for its shareholders.
Peer comparison
Dec 31, 2024