Akamai Technologies has a Cash Ratio of 1.03. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Akamai Technologies's Cash Ratio or its related term are showing as below:
AKAM'
s Cash Ratio Range Over the Past 10 Years
Min: 1.03 Med: 1.56 Max: 2.27
Current: 1.03
During the past 13 years, Akamai Technologies's highest Cash Ratio was 2.27. The lowest was 1.03. And the median was 1.56.
AKAM's Cash Ratio is ranked better than 59.36% of 2768
companies
in the Software industry
Industry Median: 0.775
vs AKAM: 1.03
Akamai Technologies Cash Ratio Historical Data
The historical data trend for Akamai Technologies's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Akamai Technologies's Cash Ratio
For the Software - Infrastructure subindustry, Akamai Technologies's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Akamai Technologies's Cash Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Akamai Technologies's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Akamai Technologies's Cash Ratio falls into.
Akamai Technologies Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Akamai Technologies's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Akamai Technologies (NAS:AKAM) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Akamai Technologies Cash Ratio Related Terms
Thank you for viewing the detailed overview of Akamai Technologies's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Akamai Technologies (Akamai Technologies) Business Description
Akamai operates a content delivery network, or CDN, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. Akamai has over 325,000 servers distributed over 4,100 points of presence in more than 1,000 cities worldwide. Its customers generally include media companies, which stream video content or make video games available for download, and other enterprises that run interactive or high-traffic websites, such as e-commerce firms and financial institutions. Akamai also has a significant security business, which is integrated with its core delivery and computing businesses to protect customers from cyberthreats.
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