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Akamai Technologies (NAS:AKAM) Financial Strength

: 6 (As of Sep. 2022)
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Akamai Technologies has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Akamai Technologies's Interest Coverage for the quarter that ended in Sep. 2022 was 57.69. Akamai Technologies's debt to revenue ratio for the quarter that ended in Sep. 2022 was 0.89. As of today, Akamai Technologies's Altman Z-Score is 3.36.


Akamai Technologies (NAS:AKAM) Financial Strength Competitive Comparison

For the Software - Infrastructure subindustry, Akamai Technologies's Financial Strength, along with its competitors' market caps and Financial Strength 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 (NAS:AKAM) Financial Strength Distribution

For the Software industry and Technology sector, Akamai Technologies's Financial Strength distribution charts can be found below:

* The bar in red indicates where Akamai Technologies's Financial Strength falls into.



Akamai Technologies Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Akamai Technologies's Interest Expense for the months ended in Sep. 2022 was $-3 Mil. Its Operating Income for the months ended in Sep. 2022 was $161 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was $2,966 Mil.

Akamai Technologies's Interest Coverage for the quarter that ended in Sep. 2022 is

Interest Coverage=-1*Operating Income (Q: Sep. 2022 )/Interest Expense (Q: Sep. 2022 )
=-1*160.665/-2.785
=57.69

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Akamai Technologies's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(187.776 + 2965.554) / 3527.584
=0.89

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Akamai Technologies has a Z-score of 3.36, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.36 is strong.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Akamai Technologies has the Financial Strength Rank of 6.


Akamai Technologies Financial Strength Related Terms

Thank you for viewing the detailed overview of Akamai Technologies's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Akamai Technologies (NAS:AKAM) Business Description

Akamai Technologies logo
Address
145 Broadway, Cambridge, MA, USA, 02142
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 4,000 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 web and media businesses to protect its customers from cyber threats.
Executives
Howell Laura officer: VP, Chief Accounting Officer C/O AKAMAI TECHNOLOGIES, INC. 145 BROADWAY CAMBRIDGE MA 02142
Bowen Sharon director 5660 NEW NORTHSIDE DRIVE ATLANTA GA 30328
Salem-jackson Kim officer: EVP, Chief Marketing Officer C/O AKAMAI TECHNOLOGIES, INC. 145 BROADWAY CAMBRIDGE MA 02142
Joseph Paul C officer: EVP - Global Sales C/O AKAMAI TECHNOLOGIES, INC. 145 BROADWAY CAMBRIDGE MA 02142
Bonner Monique officer: EVP and CMO C/O 8X8, INC 675 CREEKSIDE WAY CAMPCALL CA 95008
Sundaram Mani officer: EVP GSS and CIO C/O AKAMAI TECHNOLOGIES, INC. 145 BROADWAY CAMBRIDGE MA 02142
Brown Marianne Catherine director 4094 TIMUQUANA ROAD JACKSONVILLE FL 33210-8571
Williams Anthony P officer: EVP and CHRO C/O AKAMAI TECHNOLOGIES, INC. 145 BROADWAY CAMBRIDGE MA 02142
Ranganathan Madhu director 760 MARKET STREET 4TH FLOOR SAN FRANCISCO CA 94102
Mcgowan Edward J officer: Chief Financial Officer C/O AKAMAI TECHNOLOGIES, INC. 150 BROADWAY CAMBRIDGE MA 02142
Wagner William Raymond director C/O VOCUS, INC. 4296 FORBES BOULEVARD LANHAM MD 20706
Killalea Peter Thomas director C/O XOOM CORPORATION 425 MARKET STREET, 12TH FLOOR SAN FRANCISCO CA 94105
Ahola Aaron officer: SVP & General Counsel C/O AKAMAI TECHNOLOGIES, INC. 150 BROADWAY CAMBRIDGE MA 02142
Karon Adam officer: EVP & GM Media Division C/O AKAMAI TECHNOLOGIES, INC. 150 BROADWAY CAMBRIDGE MA 02142
Hesse Daniel director

Akamai Technologies (NAS:AKAM) Headlines

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