Akamai Technologies Inc (AKAM)

Solvency ratios

	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
Debt-to-assets ratio	0.23	0.24	0.24	0.36	0.36	0.37	0.27	0.28	0.28	0.28	0.28	0.27	0.24	0.24	0.25	0.25	0.25	0.25	0.26	0.27
Debt-to-capital ratio	0.33	0.33	0.33	0.43	0.43	0.45	0.35	0.35	0.34	0.35	0.35	0.35	0.30	0.30	0.30	0.31	0.31	0.32	0.32	0.34
Debt-to-equity ratio	0.49	0.50	0.50	0.76	0.77	0.82	0.53	0.55	0.52	0.53	0.53	0.53	0.44	0.43	0.43	0.45	0.45	0.46	0.48	0.51
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

Akamai Technologies Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations.

1. Debt-to-Assets Ratio: The trend shows a relatively stable ratio around 0.25 to 0.28 from March 2020 to December 2024, except for a sudden increase to 0.37 in September 2023. This ratio suggests that around 24% to 28% of the company's assets are financed by debt over the period.

2. Debt-to-Capital Ratio: The ratio fluctuates between 0.30 and 0.45, with a peak of 0.45 in September 2023. This ratio indicates the proportion of debt in the company's capital structure, ranging from 30% to 45% from March 2020 to December 2024.

3. Debt-to-Equity Ratio: The ratio varies between 0.43 and 0.82, with a significant spike in September 2023. This indicates that the company's debt ranged from 43% to 82% of its equity during the period, except for the anomaly in September 2023.

4. Financial Leverage Ratio: This ratio also shows an increasing trend from 1.77 in June 2021 to 2.13 in December 2024. It peaked at 2.22 in September 2023, indicating an increasing proportion of debt in the company's capital structure over the period.

Overall, Akamai Technologies Inc's solvency ratios reflect fluctuations in the company's debt levels and leverage over time, with some periods showing significant changes. Monitoring these ratios can provide insights into the company's long-term financial stability and risk management.

Coverage ratios

	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
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

The interest coverage ratio indicates the company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio suggests a lower risk of default on debt payments.

Analyzing Akamai Technologies Inc's interest coverage ratio over the reported quarters, we observe the following trends:
- The ratio has been consistently above 9.00, indicating that the company has had sufficient operating income to cover its interest expenses throughout the period.
- The ratio shows a general increasing trend from March 31, 2020, to December 31, 2022, suggesting an improving ability to cover interest expenses.
- However, from March 31, 2023, the interest coverage ratio experiences a sharp decline, reaching its lowest point at 21.52 on December 31, 2024. This significant drop could indicate increased interest expenses relative to operating income during this period.
- It is worth noting that despite the decline in the later quarters, the interest coverage ratio remained above 1.00, indicating that Akamai Technologies Inc still generated enough operating income to meet its interest obligations, although the margin of safety decreased.

In conclusion, while Akamai Technologies Inc has maintained a relatively healthy interest coverage ratio over the analyzed period, the substantial decline in the ratio starting from March 31, 2023, warrants further investigation into the company's financial health and debt management strategies.