Akamai Technologies Inc (AKAM)

Debt-to-equity 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-equity ratio		0.77	0.52	0.44	0.45	0.50

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,538,230K ÷ $4,597,160K
= 0.77

The debt-to-equity ratio of Akamai Technologies Inc has shown a fluctuating trend over the past five years. It increased from 0.50 in 2019 to 0.77 in 2023, indicating a higher level of debt relative to equity in the most recent year. The ratio was relatively stable around 0.44 to 0.52 from 2020 to 2022 before experiencing a notable increase in 2023.

A debt-to-equity ratio of 0.77 implies that for every dollar of equity, the company has $0.77 in debt. This suggests a higher reliance on debt financing compared to equity, which may bring both opportunities for leveraging investments and risks associated with debt burden.

The increasing trend in the debt-to-equity ratio should be carefully monitored, as it may indicate a shift in the company's capital structure towards more debt financing. Investors and stakeholders should assess the company's ability to manage its debt obligations effectively and evaluate the potential impact on future financial performance and sustainability.