Akamai Technologies Inc (AKAM)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 504,918 | 526,178 | 628,813 | 625,941 | 547,629 | 515,226 | 478,378 | 487,402 | 523,672 | 555,444 | 610,666 | 629,323 | 651,642 | 604,478 | 584,185 | 589,603 | 557,054 | 562,784 | 542,051 | 494,051 |
| 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 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $504,918K ÷ $10,368,800K
= 4.87%
The return on assets (ROA) for Akamai Technologies Inc has shown some fluctuations over the periods analyzed. The ROA ranged from a high of 8.01% on December 31, 2021, to a low of 4.87% on December 31, 2024. Generally, the ROA remained within the range of 5.16% to 8.01% during the periods under review, indicating that the company was effectively utilizing its assets to generate profits.
The downward trend in ROA from the peak of 8.01% in December 2021 to 4.87% in December 2024 suggests a potential decrease in the company's ability to generate earnings from its assets. This decline may raise concerns about the efficiency of asset utilization and could be indicative of challenges or changes within the company's operations or market conditions.
It is essential for Akamai Technologies Inc to closely monitor and analyze the factors influencing its ROA to identify areas for improvement in asset management and profitability. By addressing any underlying issues impacting ROA, the company can strive to enhance its financial performance and maintain competitiveness in the industry.
Peer comparison
Dec 31, 2024