Akamai Technologies Inc (AKAM)

Debt-to-assets ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 2,396,700 3,538,230 2,285,260 1,976,170 1,906,710
Total assets US$ in thousands 10,368,800 9,900,040 8,303,400 8,138,670 7,764,130
Debt-to-assets ratio 0.23 0.36 0.28 0.24 0.25

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,396,700K ÷ $10,368,800K
= 0.23

The debt-to-assets ratio for Akamai Technologies Inc has shown some fluctuations over the years, ranging from 0.23 to 0.36. This ratio indicates the percentage of the company's assets that are financed by debt. A lower ratio generally suggests a lower level of financial risk as it indicates the company relies less on debt to fund its operations.

From 2020 to 2022, the ratio remained relatively stable within the range of 0.24 to 0.28, indicating a balanced mix of debt and assets. However, there was a noticeable increase to 0.36 in 2023, potentially signaling an increase in the company's debt levels compared to its assets. This could be a cause for concern as higher debt levels may result in increased financial risk and lower financial flexibility.

The significant drop to 0.23 in 2024 suggests that the company may have reduced its debt levels relative to its assets, which can be seen as a positive development indicating a healthier financial position. Overall, monitoring the debt-to-assets ratio will be crucial for stakeholders to assess Akamai Technologies Inc's leverage and financial health over time.