Akamai Technologies Inc (AKAM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 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% | 65.50% | 65.27% | 65.00% | 64.68% |
| Operating profit margin | 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% | 19.17% | 19.04% | 18.37% | 15.77% |
| Pretax margin | 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% | 18.56% | 18.36% | 17.70% | 14.98% |
| Net profit margin | 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% | 16.70% | 16.15% | 15.31% | 12.95% |
Akamai Technologies Inc's profitability ratios have shown a slight decline over the quarters in 2023 compared to the previous year. The gross profit margin has remained relatively stable, ranging from 60.36% to 61.74%. Operating profit margin has seen a gradual decrease from 22.31% in Q1 2022 to 18.21% in Q4 2023. Similarly, the pretax margin has also exhibited a downward trend, dropping from 19.87% in Q1 2022 to 17.16% in Q4 2023. The net profit margin has fluctuated within a narrower range, reaching its lowest point at 13.82% in Q1 2023 and peaking at 17.46% in Q1 2022. Overall, Akamai's profitability has shown some volatility in 2023, which may warrant further investigation into the factors impacting the company's bottom line.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | 6.82% | 7.12% | 7.91% | 6.79% |
| Return on total capital | 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% | 10.56% | 10.55% | 12.55% | 10.98% |
| Return on equity (ROE) | 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% | 13.07% | 12.94% | 12.45% | 10.71% |
Based on the provided data, the profitability ratios of Akamai Technologies Inc have shown some fluctuations over the past eight quarters.
- Operating return on assets (Operating ROA) has ranged from 7.01% to 9.46% during this period, indicating the company's ability to generate operating income relative to its total assets. There was a slight decreasing trend from Q1 2023 to Q4 2022, followed by a slight increase in the most recent quarters.
- Return on assets (ROA) has ranged from 5.53% to 7.41% over the same period, suggesting the efficiency in generating profits from its total assets. There is a general trend of variability in the ROA with no clear pattern of increase or decrease.
- Return on total capital has fluctuated between 8.55% and 11.49%, demonstrating the company's ability to generate returns for all its capital providers. There seems to be a slight decrease in the latest quarter compared to the previous ones.
- Return on equity (ROE) has varied from 11.91% to 14.30% over the eight quarters, highlighting the profitability to shareholders from their equity investments. The ROE has shown an overall stable performance, with no significant increasing or decreasing trends.
In conclusion, Akamai Technologies Inc has maintained relatively stable profitability ratios over the past two years, with some minor fluctuations in certain ratios. The company has been able to generate satisfactory returns for its stakeholders, including both asset and equity providers.