Akamai Technologies Inc (AKAM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,878,360 | 4,597,160 | 4,360,190 | 4,530,010 | 4,251,300 |
| ROE | 10.35% | 11.91% | 12.01% | 14.39% | 13.10% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $504,918K ÷ $4,878,360K
= 10.35%
Akamai Technologies Inc's return on equity (ROE) has shown a slight increase from 13.10% as of December 31, 2020, to 14.39% as of December 31, 2021. This indicates an improvement in the company's ability to generate profit from its shareholder's equity during this period. However, the ROE declined to 12.01% as of December 31, 2022, and further to 11.91% as of December 31, 2023, reflecting a decrease in profitability relative to shareholders' equity. By the end of December 31, 2024, the ROE decreased to 10.35%, suggesting a continued decline in the efficiency of leveraging equity to generate profits. It is important for stakeholders to monitor this trend closely and understand the factors influencing Akamai Technologies Inc's ROE performance for informed decision-making.
Peer comparison
Dec 31, 2024