Akamai Technologies Inc (AKAM)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	9,900,040	8,303,400	8,138,670	7,764,130	7,006,890
Total stockholders’ equity	US$ in thousands	4,597,160	4,360,190	4,530,010	4,251,300	3,657,960
Financial leverage ratio		2.15	1.90	1.80	1.83	1.92

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,900,040K ÷ $4,597,160K
= 2.15

The financial leverage ratio of Akamai Technologies Inc has exhibited some fluctuations over the past five years. The ratio increased from 1.83 in 2020 to 1.90 in 2022, before further rising to 2.15 in 2023. This indicates that the company's reliance on debt to finance its operations and growth has been on an upward trend, which could potentially pose a higher risk to the company's financial stability and performance. It is important for stakeholders to closely monitor this trend and assess the company's ability to manage its debt levels effectively in order to maintain a healthy financial position.