Akamai Technologies Inc (AKAM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,368,800 | 9,900,040 | 8,303,400 | 8,138,670 | 7,764,130 |
| Total stockholders’ equity | US$ in thousands | 4,878,360 | 4,597,160 | 4,360,190 | 4,530,010 | 4,251,300 |
| Financial leverage ratio | 2.13 | 2.15 | 1.90 | 1.80 | 1.83 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,368,800K ÷ $4,878,360K
= 2.13
The financial leverage ratio of Akamai Technologies Inc has displayed some fluctuations over the years, starting at 1.83 in December 2020, declining slightly to 1.80 by December 2021, and then increasing to 1.90 by December 2022. The ratio experienced a more notable increase to 2.15 by December 2023 before slightly dropping to 2.13 by December 2024. These changes indicate variations in the company's mix of debt and equity financing, with a higher ratio suggesting a greater reliance on debt to finance its operations and investments. The upward trend in recent years may indicate a strategy of leveraging debt to fund growth opportunities or acquire assets. However, monitoring and managing debt levels are crucial to ensure financial stability and solvency in the long term.
Peer comparison
Dec 31, 2024