Akamai Technologies Inc (AKAM)

Debt-to-capital ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Long-term debt US$ in thousands 2,396,700 2,395,440 2,394,190 3,540,120 3,538,230 3,536,340 2,287,480 2,286,370 2,285,260 2,284,150 2,283,040 2,281,930 1,976,170 1,958,560 1,941,110 1,923,830 1,906,710 1,889,740 1,872,940 1,856,290
Total stockholders’ equity US$ in thousands 4,878,360 4,794,140 4,754,680 4,633,770 4,597,160 4,324,200 4,289,170 4,171,340 4,360,190 4,281,240 4,312,990 4,314,740 4,530,010 4,582,440 4,476,660 4,321,360 4,251,300 4,107,620 3,904,300 3,672,220
Debt-to-capital ratio 0.33 0.33 0.33 0.43 0.43 0.45 0.35 0.35 0.34 0.35 0.35 0.35 0.30 0.30 0.30 0.31 0.31 0.32 0.32 0.34

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 exhibited some fluctuations over the periods analyzed. The ratio decreased from 0.34 as of March 31, 2020, to 0.30 as of June 30, 2021, indicating a reduction in the proportion of debt in the capital structure. Subsequently, the ratio slightly increased to 0.35 as of March 31, 2022, before fluctuating around this level for the next few quarters.

However, there was a notable increase in the debt-to-capital ratio to 0.45 as of September 30, 2023, suggesting a higher reliance on debt financing relative to total capital. This elevation was followed by a decrease in the ratio to 0.33 as of December 31, 2024, which brought it back closer to the levels seen in the earlier periods.

Overall, the trend in Akamai Technologies Inc's debt-to-capital ratio indicates variations in the company's capital structure and its utilization of debt over the periods studied. A higher ratio could indicate a higher level of financial risk due to increased debt obligations, while a lower ratio may signify a more conservative capital structure with less reliance on debt financing.