Akamai Technologies Inc (AKAM)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 671,711 | 661,464 | 786,545 | 672,096 | 580,749 |
| Long-term debt | US$ in thousands | 3,538,230 | 2,285,260 | 1,976,170 | 1,906,710 | 1,839,790 |
| Total stockholders’ equity | US$ in thousands | 4,597,160 | 4,360,190 | 4,530,010 | 4,251,300 | 3,657,960 |
| Return on total capital | 8.26% | 9.95% | 12.09% | 10.91% | 10.56% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $671,711K ÷ ($3,538,230K + $4,597,160K)
= 8.26%
Akamai Technologies Inc's return on total capital has exhibited a slight declining trend from 2019 to 2023. The company's return on total capital decreased from 10.28% in 2019 to 8.55% in 2023. This suggests that the company may be experiencing challenges in generating profit relative to its invested capital over the years. It is important for Akamai Technologies Inc to analyze the factors contributing to this decline in return on total capital and implement strategies to improve its efficiency in utilizing its total capital to generate returns for its stakeholders.
Peer comparison
Dec 31, 2023