Akamai Technologies Inc (AKAM)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.28 | 0.24 | 0.25 | 0.26 |
| Debt-to-capital ratio | 0.43 | 0.34 | 0.30 | 0.31 | 0.33 |
| Debt-to-equity ratio | 0.77 | 0.52 | 0.44 | 0.45 | 0.50 |
| Financial leverage ratio | 2.15 | 1.90 | 1.80 | 1.83 | 1.92 |
The solvency ratios of Akamai Technologies Inc have displayed varying trends over the past five years. The debt-to-assets ratio has been increasing steadily from 0.24 in 2021 to 0.36 in 2023, indicating a higher proportion of assets financed by debt. This could potentially raise concerns about the company's ability to meet its debt obligations if its asset value were to decline.
Similarly, the debt-to-capital ratio has also been on an upward trajectory, rising from 0.30 in 2021 to 0.43 in 2023. This suggests that a larger portion of the company's capital structure is comprised of debt, which may increase financial risk and interest expenses.
The debt-to-equity ratio has exhibited a similar pattern, climbing from 0.44 in 2021 to 0.77 in 2023. This implies that the company is increasingly reliant on debt financing relative to equity, which could result in higher financial leverage and interest payments.
The financial leverage ratio, which reflects the company's total debt relative to its equity, has also been increasing over the period, reaching 2.15 in 2023. A higher financial leverage ratio indicates that the company is using more debt to finance its operations, potentially magnifying both returns and risks.
Overall, the trend of rising solvency ratios for Akamai Technologies Inc suggests an increasing reliance on debt financing, which could raise concerns about the company's ability to manage its debt obligations and financial risks effectively. Investors and stakeholders should closely monitor these metrics to assess the company's financial health and stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 37.93 | 59.61 | 10.87 | 9.72 | 11.76 |
The interest coverage ratio of Akamai Technologies Inc has varied over the years based on the data provided. In 2023, the interest coverage ratio stands at 58.41, representing a substantial decrease compared to the previous year's ratio of 216.56. The notable decline in the interest coverage ratio suggests that the company may have experienced increased interest expense relative to its operating income. It is worth noting that in 2021, the data for interest coverage is not available.
The interest coverage ratios for 2020 and 2019 were 17.07 and 37.64, respectively. These ratios indicate the company's ability to meet its interest obligations through its operating income. A higher interest coverage ratio signifies a stronger ability to cover interest payments from operating profits.
Overall, the trend in Akamai Technologies Inc's interest coverage ratio indicates fluctuations in its ability to comfortably meet interest payments over the years, with the ratios reflecting both improvements and declines in this aspect of the company's financial health.