Akamai Technologies Inc (AKAM)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	637,338	620,027	604,336	629,593	676,274	704,884	749,711	774,103	783,148	721,680	697,573	688,568	658,534	659,239	621,370	566,723	548,918	533,884	507,132	428,467
Total assets	US$ in thousands	9,900,040	9,582,090	8,345,960	8,183,330	8,303,400	8,136,480	8,230,750	8,312,390	8,138,670	8,115,480	7,920,940	7,817,920	7,764,130	7,514,390	7,224,800	6,947,960	7,006,890	6,357,430	5,343,240	5,182,760
Operating ROA		6.44%	6.47%	7.24%	7.69%	8.14%	8.66%	9.11%	9.31%	9.62%	8.89%	8.81%	8.81%	8.48%	8.77%	8.60%	8.16%	7.83%	8.40%	9.49%	8.27%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $637,338K ÷ $9,900,040K
= 6.44%

Akamai Technologies Inc's operating return on assets (operating ROA) has shown a declining trend over the past eight quarters. The company's operating ROA decreased from 9.46% in Q1 2022 to 7.01% in Q4 2023. This decline indicates that the company's ability to generate operating income from its assets has weakened over time.

Fluctuations in operating ROA can be influenced by changes in operational efficiency, asset utilization, profitability, and overall business performance. The consistent decrease in operating ROA may raise concerns about the company's profitability and operational effectiveness.

A lower operating ROA suggests that Akamai Technologies Inc may not be efficiently utilizing its assets to generate operating income. Management should closely monitor and address the factors contributing to this decline to improve operational performance and enhance overall financial health.