Akamai Technologies Inc (AKAM)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	4,597,160	4,360,190	4,530,010	4,251,300	3,657,960
Debt-to-capital ratio		0.43	0.34	0.30	0.31	0.33

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,538,230K ÷ ($3,538,230K + $4,597,160K)
= 0.43

The debt-to-capital ratio of Akamai Technologies Inc has shown an increasing trend over the past five years, rising from 0.33 in 2019 to 0.43 in 2023. This indicates that the company's reliance on debt to finance its operations and growth has also been increasing steadily.

A debt-to-capital ratio of 0.43 as of December 31, 2023, implies that 43% of Akamai's capital structure is funded by debt, while the remaining 57% is financed by equity. This suggests that the company has a relatively higher debt burden compared to its equity, which can expose it to risks such as higher interest expenses and financial leverage.

It is important for investors and stakeholders to closely monitor Akamai's debt levels and its ability to manage and service its debt obligations effectively, especially given the upward trajectory of the debt-to-capital ratio over the past few years. Additionally, fluctuations in interest rates or changes in the company's financial performance could impact its debt servicing capabilities and overall financial health.