Akamai Technologies Inc (AKAM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,368,800 | 10,190,500 | 10,087,500 | 9,935,610 | 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 |
| 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 |
| Financial leverage ratio | 2.13 | 2.13 | 2.12 | 2.14 | 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 |
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 been relatively stable over the period from March 31, 2020, to December 31, 2024, ranging from a low of 1.77 to a high of 2.22. The ratio indicates that the company's reliance on debt financing compared to equity has been fluctuating within a narrow band.
In the earlier periods, the financial leverage ratio gradually decreased, reaching a low of 1.77 by June 30, 2021. However, from March 31, 2022, the ratio started to increase steadily, peaking at 2.22 on September 30, 2023, before slightly declining to 2.13 by December 31, 2024.
The fluctuation in the financial leverage ratio highlights changes in the capital structure of Akamai Technologies Inc over time. A higher ratio signifies higher financial risk due to increased debt relative to equity, while a lower ratio indicates a lower level of financial risk. It is essential for stakeholders to monitor the trend in the financial leverage ratio to assess the company's ability to meet its financial obligations and manage its leverage effectively.
Peer comparison
Dec 31, 2024