Akamai Technologies Inc (AKAM)

Debt-to-equity 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-equity ratio 0.49 0.50 0.50 0.76 0.77 0.82 0.53 0.55 0.52 0.53 0.53 0.53 0.44 0.43 0.43 0.45 0.45 0.46 0.48 0.51

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 of Akamai Technologies Inc has fluctuated over the past few years, ranging from 0.43 to 0.82. As of December 31, 2024, the ratio stands at 0.49, indicating that the company has a relatively low level of debt compared to its equity. The trend in the ratio shows a decrease from a peak of 0.82 in September 30, 2023, which may suggest that the company has been actively managing its debt levels.

It is important to note that a lower debt-to-equity ratio generally signifies lower financial risk as it indicates that the company is relying more on equity financing rather than debt financing. However, a very low ratio could also indicate that the company is not utilizing debt efficiently to support its growth or take advantage of potential opportunities. On the other hand, a higher ratio could imply higher financial risk and increased dependence on debt to finance operations and growth.

In conclusion, Akamai Technologies Inc's debt-to-equity ratio has shown fluctuations but has remained within a reasonable range. It is essential for investors and stakeholders to monitor this ratio along with other financial metrics to assess the company's financial health and risk profile effectively.