Akamai Technologies Inc (AKAM)

Debt-to-equity 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-equity ratio		0.49	0.77	0.52	0.44	0.45

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,396,700K ÷ $4,878,360K
= 0.49

The debt-to-equity ratio for Akamai Technologies Inc as reported in the financial statement data is showing a fluctuating trend over the past five years. The ratio stood at 0.45 as of December 31, 2020, indicating that the company had relatively lower reliance on debt to finance its operations compared to equity. The ratio slightly decreased to 0.44 by the end of December 31, 2021, suggesting a potential improvement in the financial leverage of the company.

However, by December 31, 2022, the debt-to-equity ratio increased to 0.52, signaling a higher proportion of debt being used in the company's capital structure compared to the equity. This could potentially raise concerns regarding the company's financial risk and liquidity position.

The ratio experienced a significant jump to 0.77 as of December 31, 2023, indicating a substantial increase in the company's debt relative to its equity. This could imply heightened financial leverage and potential challenges in meeting debt obligations.

Subsequently, by December 31, 2024, the debt-to-equity ratio decreased to 0.49, showing a moderation in the debt levels compared to the equity. However, it is still above the levels seen in the earlier years, implying that the company still maintains a considerable amount of debt in its capital structure.

In summary, Akamai Technologies Inc's debt-to-equity ratio has displayed fluctuations over the past five years, with periods of both increase and decrease. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's financial health and risk management strategies.