Akamai Technologies Inc (AKAM)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	671,711	661,464	786,545	672,096	580,749
Interest expense	US$ in thousands	17,709	11,096	72,332	69,120	49,364
Interest coverage		37.93	59.61	10.87	9.72	11.76

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $671,711K ÷ $17,709K
= 37.93

The interest coverage ratio for Akamai Technologies Inc has fluctuated over the years. In 2019, the company had an interest coverage of 37.64, which indicates that the company was able to cover its interest expenses nearly 38 times over with its earnings before interest and taxes (EBIT).

This ratio improved significantly in 2020 to 17.07, suggesting a more robust ability to cover interest payments with its earnings. However, the ratio for 2021 is not available, possibly due to incomplete data or a specific event impacting interest coverage.

In 2022, the interest coverage ratio increased substantially to 216.56, indicating a significant improvement in the company's capacity to cover its interest obligations. This surge in the ratio suggests that Akamai Technologies Inc had a significantly increased EBIT relative to its interest expenses, reflecting strong financial health and operational efficiency.

As of 2023, the interest coverage ratio decreased to 58.41, but still remains at a relatively high level, signifying that the company continues to have a comfortable margin to cover its interest payments. Overall, the trend in Akamai Technologies Inc's interest coverage ratio demonstrates fluctuations but generally indicates a strong ability to meet its interest obligations with its earnings.