Akamai Technologies Inc (AKAM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 561,763 | 616,828 | 732,046 | 737,224 | 671,711 | 639,670 | 614,760 | 635,123 | 661,464 | 688,247 | 738,010 | 757,026 | 786,545 | 723,548 | 697,588 | 702,880 | 672,096 | 683,633 | 647,942 | 591,721 |
| Long-term debt | US$ in thousands | 2,396,700 | 2,395,440 | 2,394,190 | 3,540,120 | 3,538,230 | 3,536,340 | 2,287,480 | 2,286,370 | 2,285,260 | 2,284,150 | 2,283,040 | 2,281,930 | 1,976,170 | 1,958,560 | 1,941,110 | 1,923,830 | 1,906,710 | 1,889,740 | 1,872,940 | 1,856,290 |
| Total stockholders’ equity | US$ in thousands | 4,878,360 | 4,794,140 | 4,754,680 | 4,633,770 | 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 |
| Return on total capital | 7.72% | 8.58% | 10.24% | 9.02% | 8.26% | 8.14% | 9.35% | 9.84% | 9.95% | 10.48% | 11.19% | 11.48% | 12.09% | 11.06% | 10.87% | 11.25% | 10.91% | 11.40% | 11.22% | 10.70% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $561,763K ÷ ($2,396,700K + $4,878,360K)
= 7.72%
Akamai Technologies Inc's return on total capital has shown fluctuations over the analyzed period, ranging from a low of 7.72% as of December 31, 2024, to a high of 12.09% as of December 31, 2021. Overall, the company's return on total capital has demonstrated some volatility, with periods of increase followed by periods of decline.
The return on total capital provides insight into how efficiently the company is utilizing its capital to generate profits. The fluctuation in this ratio indicates changes in the company's ability to generate returns compared to the capital invested.
It is important for investors and analysts to monitor this metric regularly to assess the company's financial performance and efficiency in generating profits relative to the total capital employed. In the case of Akamai Technologies Inc, the trend in return on total capital can provide valuable insights into the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024