Akamai Technologies Inc (AKAM)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	4,878,360	4,597,160	4,360,190	4,530,010	4,251,300
Debt-to-capital ratio		0.33	0.43	0.34	0.30	0.31

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,396,700K ÷ ($2,396,700K + $4,878,360K)
= 0.33

The debt-to-capital ratio of Akamai Technologies Inc has experienced fluctuations over the past five years, as evidenced by the data provided. As of December 31, 2020, the ratio stood at 0.31, showing that 31% of the company's capital was financed through debt. This ratio decreased slightly to 0.30 by the end of 2021, indicating a lower reliance on debt to fund the capital structure.

However, there was a notable increase in the debt-to-capital ratio to 0.34 by December 31, 2022, suggesting a higher proportion of debt in the capital structure. The ratio then experienced a more significant rise to 0.43 by the end of 2023, indicating a substantial increase in the reliance on debt financing.

Subsequently, by December 31, 2024, the debt-to-capital ratio decreased to 0.33, which may suggest that the company made efforts to reduce its debt relative to its capital compared to the previous year. Overall, the trend in Akamai Technologies Inc's debt-to-capital ratio reflects varying levels of debt utilization to finance its operations and investments over the years. It is essential for stakeholders to closely monitor this ratio to assess the company's financial leverage and risk management strategies.