Akamai Technologies Inc (AKAM)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 654,002 | 650,368 | 714,213 | 602,976 | 531,385 |
| Revenue | US$ in thousands | 3,826,240 | 3,631,300 | 3,409,920 | 3,151,090 | 2,849,370 |
| Pretax margin | 17.09% | 17.91% | 20.95% | 19.14% | 18.65% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $654,002K ÷ $3,826,240K
= 17.09%
The pretax margin of Akamai Technologies Inc has shown fluctuation over the past five years, ranging from 17.16% in 2023 to a peak of 20.63% in 2021. In general, the company has been able to maintain healthy profitability levels, with pretax margins consistently above 17% in the years presented.
While the pretax margin decreased slightly in 2023 compared to the prior year, it is still within a reasonable range. It is important for investors and stakeholders to monitor the trend in pretax margin over time as it reflects the company's ability to generate profits before considering the impact of taxes and can provide insights into cost management and operational efficiency. Additional analysis of the company's operating expenses and revenue growth would be beneficial to understand the factors driving the changes in the pretax margin.
Peer comparison
Dec 31, 2023