Akamai Technologies Inc (AKAM)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	580,749	561,997	538,276	457,419
Long-term debt	US$ in thousands	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	1,839,790	1,823,450	893,191	883,584
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
Return on total capital		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%	10.56%	10.55%	12.55%	10.98%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 shown a decreasing trend from Q1 2022 to Q4 2023. The company's return on total capital was highest in Q1 2022 at 11.49% and has gradually decreased to 8.55% in Q4 2023. This indicates that the company's ability to generate profits from its total capital has weakened over the period under review. Investors and stakeholders may need to further evaluate the factors impacting this decline in order to make informed decisions about the company's financial performance and potential future prospects.