Akamai Technologies Inc (AKAM)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	9,900,040	9,582,090	8,345,960	8,183,330	8,303,400	8,136,480	8,230,750	8,312,390	8,138,670	8,115,480	7,920,940	7,817,920	7,764,130	7,514,390	7,224,800	6,947,960	7,006,890	6,357,430	5,343,240	5,182,760
Total stockholders’ equity	US$ in thousands	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	3,657,960	3,501,600	3,394,760	3,283,220
Financial leverage ratio		2.15	2.22	1.95	1.96	1.90	1.90	1.91	1.93	1.80	1.77	1.77	1.81	1.83	1.83	1.85	1.89	1.92	1.82	1.57	1.58

December 31, 2023 calculation

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

The financial leverage ratio measures the extent to which a company relies on debt financing to support its operations and growth. Akamai Technologies Inc's financial leverage ratio has exhibited some fluctuations over the recent quarters, ranging from a low of 1.90 in Q4 2022 to a high of 2.22 in Q3 2023.

A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. Akamai's ratios above 2 indicate a relatively high level of financial leverage, suggesting that the company may be relying heavily on debt to fund its operations and investments.

The fluctuations in the financial leverage ratio over the quarters may signal changes in the company's capital structure and debt levels. A decreasing trend in the ratio from Q4 2022 to Q3 2023 could indicate a reduction in debt relative to equity, potentially reducing financial risk but also implying less leverage for growth.

It is important to further analyze the trend and consider other financial metrics to assess the overall financial health and risk profile of Akamai Technologies Inc, as a high financial leverage ratio can indicate increased financial risk and sensitivity to economic downturns.