Akamai Technologies Inc (AKAM)

Solvency ratios

	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
Debt-to-assets ratio	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	0.26	0.29	0.17	0.17
Debt-to-capital ratio	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	0.33	0.34	0.21	0.21
Debt-to-equity ratio	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	0.50	0.52	0.26	0.27
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

Akamai Technologies Inc's solvency ratios indicate the company's ability to meet its long-term debt obligations. Looking at the Debt-to-assets ratio, we observe an increasing trend over the past quarters, signaling that 36% to 37% of the company's assets were financed by debt in the recent quarters. The Debt-to-capital ratio also shows an upward trend, fluctuating around 43% to 45% of debt financing relative to the company's total capital structure.

The Debt-to-equity ratio reflects how much of the company's assets are funded by debt versus equity. Akamai's Debt-to-equity ratio ranges from 0.52 to 0.82, indicating a moderate to high level of leverage, with debt financing accounting for 52% to 82% of the company's equity in the recent quarters.

Lastly, the Financial leverage ratio provides insight into the company's use of debt in comparison to equity. It shows an increasing trend over the past quarters, ranging from 1.90 to 2.22. This suggests that for every dollar of equity, Akamai has $1.90 to $2.22 of debt, reflecting increased financial leverage.

Overall, the solvency ratios of Akamai Technologies Inc indicate a moderate to high level of leverage, with increasing reliance on debt financing to support the company's operations and growth. Continued monitoring of these ratios is advised to assess the company's ability to manage its debt obligations effectively.

Coverage ratios

	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
Interest coverage	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	11.76	11.89	10.83	9.06

Akamai Technologies Inc's interest coverage ratio has exhibited significant fluctuations over the quarters analyzed. The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income. A higher ratio indicates a more comfortable position to meet interest payments.

In Q4 2023, the interest coverage stood at 58.41, indicating that the company generated 58 times the operating income necessary to cover its interest expenses in that quarter. This ratio improved compared to the previous quarter, Q3 2023, where the interest coverage was 130.02.

The interest coverage ratio further improved in Q2 2023 to 195.90, showing a strong ability to cover interest payments. However, in Q1 2023, the ratio spiked significantly to 3,300.14, suggesting an extraordinary level of operating income relative to interest expenses.

Comparing these figures to previous quarters, it appears that in Q4 2022, the interest coverage was 216.56, indicating a somewhat lower ability to cover interest expenses compared to the recent quarters. Notably, data for Q3 2022, Q2 2022, and Q1 2022 are not available for comparison.

Overall, Akamai Technologies Inc's interest coverage ratio has shown fluctuations, with Q1 2023 standing out as a quarter with an exceptionally high ratio, potentially due to unique circumstances that propelled operating income significantly higher relative to interest expenses. It would be essential to monitor future quarters to assess the trend and sustainability of this financial metric.