Akamai Technologies Inc (AKAM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.36 | 0.28 | 0.24 | 0.25 |
| Debt-to-capital ratio | 0.33 | 0.43 | 0.34 | 0.30 | 0.31 |
| Debt-to-equity ratio | 0.49 | 0.77 | 0.52 | 0.44 | 0.45 |
| Financial leverage ratio | 2.13 | 2.15 | 1.90 | 1.80 | 1.83 |
The solvency ratios of Akamai Technologies Inc indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has shown a slight fluctuation over the years, decreasing from 0.25 in 2020 to 0.23 in 2024, which suggests that the company's reliance on debt in proportion to its assets has decreased.
The Debt-to-capital ratio, a measure of the proportion of debt used to finance the company's operations, has remained relatively stable, with a minor increase from 0.31 in 2020 to 0.33 in 2024. This indicates a balanced mix of debt and equity in the company's capital structure.
The Debt-to-equity ratio has shown some variability, decreasing from 0.45 in 2020 to 0.49 in 2024 with a spike to 0.77 in 2023. This suggests that the company's reliance on debt in relation to equity has fluctuated over the years, peaking in 2023.
The Financial leverage ratio, which measures the company's use of debt in comparison to equity, has increased from 1.83 in 2020 to 2.13 in 2024. This indicates that the company has been taking on more debt relative to equity to support its operations.
Overall, Akamai Technologies Inc's solvency ratios reflect a mixed picture, showing some fluctuations in the company's debt levels and financial structure over the years. It is crucial for stakeholders to monitor these ratios to assess the company's ability to meet its long-term financial obligations effectively.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 20.65 | 37.93 | 59.61 | 10.87 | 9.72 |
Akamai Technologies Inc's interest coverage ratio has shown an upward trend over the years, reflecting the company's ability to meet its interest obligations comfortably. As of December 31, 2020, the interest coverage stood at 9.72, indicating that the company generated almost 10 times more operating income than the interest expense.
The ratio improved significantly to 10.87 by December 31, 2021, further strengthening Akamai's position in terms of servicing its debt obligations. This trend continued into the following years, with the interest coverage reaching 59.61 by December 31, 2022, suggesting a substantial increase in the company's ability to cover its interest payments.
By December 31, 2023, the interest coverage remained high at 37.93, demonstrating a consistent ability to generate sufficient operating income to meet interest expenses. Even as of December 31, 2024, with an interest coverage of 20.65, the company maintains a robust position in managing its interest obligations.
Overall, the increasing trend in Akamai Technologies Inc's interest coverage ratio signifies the company's healthy financial performance and capacity to service its debt, providing a positive outlook for the company's financial stability.