Akamai Technologies Inc (AKAM)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	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	478,035	452,950	422,643	351,789
Total stockholders’ equity	US$ in thousands	4,597,160	4,324,200	4,289,170	4,171,340	4,360,190	4,281,240	4,312,990	4,314,740	4,530,010	4,582,440	4,476,660	4,321,360	4,251,300	4,107,620	3,904,300	3,672,220	3,657,960	3,501,600	3,394,760	3,283,220
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $547,629K ÷ $4,597,160K
= 11.91%

Akamai Technologies Inc's return on equity (ROE) has shown some fluctuation over the past eight quarters. In Q4 2023, the ROE was 11.91%, which was slightly lower than the previous quarter's ROE of 13.03%. This decrease suggests that the company's ability to generate profit from shareholders' equity weakened during this period. Comparing it with Q4 2022 when the ROE was 12.01%, there has been a minimal decline in profitability.

Looking at the broader trend, Akamai's ROE has remained relatively stable around the 12% mark in the past two years. The highest ROE was recorded in Q1 2022 at 14.30%, indicating a peak in profitability during that period. Overall, the company has demonstrated a reasonable ability to generate returns for its shareholders, as its ROE figures have consistently been above 10%.

However, it's important to investigate further into the factors influencing these fluctuations in ROE to determine the underlying drivers of performance and assess the company's long-term profitability prospects.