Akamai Technologies Inc (AKAM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 59.64% | 59.85% | 60.05% | 60.33% | 60.51% | 60.48% | 60.60% | 60.99% | 61.65% | 62.32% | 62.76% | 62.82% | 62.76% | 62.74% | 63.01% | 63.69% | 64.00% | 64.63% | 64.94% | 65.17% |
| Operating profit margin | 13.28% | 14.31% | 17.15% | 17.40% | 16.66% | 16.61% | 16.55% | 17.39% | 18.74% | 19.66% | 21.13% | 22.22% | 22.99% | 21.55% | 21.26% | 21.36% | 20.93% | 21.46% | 20.74% | 19.44% |
| Pretax margin | 14.62% | 15.69% | 18.58% | 18.37% | 17.09% | 16.77% | 16.52% | 17.24% | 18.02% | 18.45% | 19.61% | 20.09% | 20.96% | 19.48% | 19.11% | 19.64% | 19.16% | 20.02% | 19.52% | 18.43% |
| Net profit margin | 12.57% | 13.21% | 15.96% | 16.08% | 14.31% | 13.80% | 13.10% | 13.46% | 14.51% | 15.49% | 17.21% | 18.07% | 19.13% | 18.05% | 17.80% | 18.29% | 17.70% | 18.32% | 18.10% | 16.95% |
Akamai Technologies Inc's profitability ratios have shown a downward trend over the past few years. The gross profit margin has declined gradually from 65.17% as of March 31, 2020, to 59.64% as of December 31, 2024. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
Similarly, the operating profit margin has also decreased over the years, falling from 19.44% on March 31, 2020, to 13.28% on December 31, 2024. This shows a decline in the company's operating efficiency and profitability from each dollar of sales.
The pretax margin, which represents the company's profitability before taxes, followed a similar declining trend, going down from 18.43% on March 31, 2020, to 14.62% by December 31, 2024. This indicates a decrease in the company's ability to generate profit before tax expenses.
Lastly, the net profit margin, which reflects the company's profitability after all expenses have been deducted, also decreased from 16.95% as of March 31, 2020, to 12.57% as of December 31, 2024. This decline suggests a reduction in the company's overall profitability and efficiency in generating bottom-line profits.
In conclusion, the analysis of Akamai Technologies Inc's profitability ratios indicates a downward performance trend over the specified period, reflecting challenges in maintaining profitability levels and operational efficiency.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 4.87% | 5.16% | 6.23% | 6.30% | 5.53% | 5.38% | 5.73% | 5.96% | 6.31% | 6.83% | 7.42% | 7.57% | 8.01% | 7.45% | 7.38% | 7.54% | 7.17% | 7.49% | 7.50% | 7.11% |
| Return on total capital | 7.72% | 8.58% | 10.24% | 9.02% | 8.26% | 8.14% | 9.35% | 9.84% | 9.95% | 10.48% | 11.19% | 11.48% | 12.09% | 11.06% | 10.87% | 11.25% | 10.91% | 11.40% | 11.22% | 10.70% |
| Return on equity (ROE) | 10.35% | 10.98% | 13.23% | 13.51% | 11.91% | 11.91% | 11.15% | 11.68% | 12.01% | 12.97% | 14.16% | 14.59% | 14.39% | 13.19% | 13.05% | 13.64% | 13.10% | 13.70% | 13.88% | 13.45% |
Akamai Technologies Inc's profitability ratios demonstrate a fluctuating trend over the periods analyzed.
- Operating Return on Assets (Operating ROA) increased gradually from 8.16% in March 2020 to 9.62% in December 2021 before declining to 5.14% in December 2024. This ratio indicates the company's operating income generated from its assets.
- Return on Assets (ROA) also showed a similar pattern, rising to 8.01% in December 2021 but declining to 4.87% by December 2024, reflecting the company's overall profitability relative to its total assets.
- Return on Total Capital peaked at 12.09% in December 2021 but saw a downward trend thereafter, reaching 7.72% by December 2024. This ratio measures the company's efficiency in generating returns from its total capital employed.
- Return on Equity (ROE) ranged from 13.45% in March 2020 to 14.59% in March 2022, indicating the return earned on shareholders' equity. However, it showed a decrease towards the end of the period, dropping to 10.35% by December 2024.
Overall, Akamai Technologies Inc's profitability ratios highlight variations in its ability to generate profits and returns for both shareholders and capital providers over the analyzed periods. Investors may consider these trends when evaluating the company's financial performance and future prospects.