Akamai Technologies Inc (AKAM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 504,918 | 547,629 | 523,672 | 651,642 | 557,054 |
| Total assets | US$ in thousands | 10,368,800 | 9,900,040 | 8,303,400 | 8,138,670 | 7,764,130 |
| ROA | 4.87% | 5.53% | 6.31% | 8.01% | 7.17% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $504,918K ÷ $10,368,800K
= 4.87%
Based on the data provided for Akamai Technologies Inc's return on assets (ROA) over the years, the trend indicates a slight fluctuation. The ROA was at 7.17% as of December 31, 2020, which improved to 8.01% by December 31, 2021. However, it declined in the following years to 6.31% by December 31, 2022, and further dropped to 5.53% by December 31, 2023, and 4.87% by December 31, 2024.
The decreasing trend in ROA from 2021 to 2024 suggests that Akamai Technologies Inc's ability to generate profits from its assets has been gradually diminishing. A declining ROA may indicate inefficiencies in asset utilization or decreasing profitability relative to the size of its asset base. It is essential for the company to investigate the reasons behind this decline and consider strategies to improve asset efficiency and profitability in the future to ensure sustainable growth and performance.
Peer comparison
Dec 31, 2024