Akamai Technologies Inc (AKAM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 533,411 | 570,137 | 675,629 | 677,428 | 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 |
| Total assets | US$ in thousands | 10,368,800 | 10,190,500 | 10,087,500 | 9,935,610 | 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 |
| Operating ROA | 5.14% | 5.59% | 6.70% | 6.82% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $533,411K ÷ $10,368,800K
= 5.14%
Operating return on assets (ROA) is a financial metric that measures a company's ability to generate operating income from its assets. Looking at the data provided for Akamai Technologies Inc, we observe that the operating ROA has fluctuated over the quarters from March 31, 2020, to December 31, 2024.
The trend shows an initial increase from 8.16% on March 31, 2020, to a peak of 9.62% on December 31, 2021. This indicates an improvement in the company's efficiency in generating operating income from its assets during this period. However, from March 31, 2022, to December 31, 2024, the operating ROA started to decline gradually, reaching 5.14% by the end of December 31, 2024.
The declining trend in operating ROA suggests that Akamai Technologies Inc may be experiencing challenges in maintaining or improving its operating efficiency in generating profits relative to its assets. It could be due to various factors, such as increased operating expenses, declining revenues, or changes in the asset base.
Overall, the analysis of Akamai Technologies Inc's operating ROA indicates both positive and negative trends in the company's operational efficiency and effectiveness in utilizing its assets to generate operating income over the observed period. Investors and stakeholders may want to further investigate the factors contributing to these fluctuations to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024