Akamai Technologies Inc (AKAM)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	561,763	616,828	732,046	737,224	671,711	639,670	614,760	635,123	661,464	688,247	738,010	757,026	786,545	723,548	697,588	702,880	672,096	683,633	647,942	591,721
Interest expense (ttm)	US$ in thousands	26,100	26,616	25,229	21,846	17,709	13,509	11,307	11,082	11,096	26,729	42,088	57,193	72,332	71,357	70,537	69,749	69,120	68,453	63,256	54,453
Interest coverage		21.52	23.18	29.02	33.75	37.93	47.35	54.37	57.31	59.61	25.75	17.53	13.24	10.87	10.14	9.89	10.08	9.72	9.99	10.24	10.87

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $561,763K ÷ $26,100K
= 21.52

Akamai Technologies Inc's interest coverage ratio has shown a generally positive trend over the past few years, indicating the company's ability to meet its interest obligations. The interest coverage ratio has fluctuated between 9.72 and 59.61 during the period from December 31, 2020, to December 31, 2024. The ratio peaked at 59.61 on December 31, 2022, which may suggest a significant increase in the company's ability to cover interest expenses. However, there was a notable decrease in the ratio to 21.52 on December 31, 2024, which could indicate a potential strain on Akamai's ability to cover interest payments with its earnings. Overall, fluctuations in the interest coverage ratio should be monitored to assess the company's financial health and its ability to handle debt obligations.