Akamai Technologies Inc (AKAM)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	3,538,230	2,285,260	1,976,170	1,906,710	1,839,790
Total assets	US$ in thousands	9,900,040	8,303,400	8,138,670	7,764,130	7,006,890
Debt-to-assets ratio		0.36	0.28	0.24	0.25	0.26

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,538,230K ÷ $9,900,040K
= 0.36

The debt-to-assets ratio of Akamai Technologies Inc has shown an increasing trend from 0.26 in 2019 to 0.36 in 2023, indicating a higher proportion of debt relative to total assets over the period. This suggests that the company has been relying more on debt financing to support its operations and growth initiatives.

Although the ratio has fluctuated in recent years, surpassing the 0.3 mark in 2022 and further rising in 2023, it is important to note that a higher debt-to-assets ratio may indicate a higher financial risk and dependency on debt to finance its activities.

Investors and stakeholders should closely monitor this ratio to assess the company's leverage levels and overall financial health, as a significant increase in the debt-to-assets ratio could potentially lead to liquidity issues or financial distress in the future.