AKAM (Akamai Technologies) ROCE % : 3.85% (As of Sep. 2024)

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What is Akamai Technologies ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Akamai Technologies's annualized ROCE % for the quarter that ended in Sep. 2024 was 3.85%.

Akamai Technologies ROCE % Historical Data

The historical data trend for Akamai Technologies's ROCE % 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.

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Akamai Technologies ROCE % Chart

Akamai Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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11.01

10.29

11.15

9.02

8.10

Akamai Technologies Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															9.00	9.28	8.58	7.96	3.85

Akamai Technologies ROCE % Calculation

Akamai Technologies's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	670.236	/	( ( (8303.4 - 818.868)	+	(9900.037 - 836.038) )	/ 2 )
	=	670.236	/	( (7484.532	+	9063.999)	/ 2 )
	=	670.236	/	8274.2655
	=	8.10 %

Akamai Technologies's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	314.356	/	( ( (10087.532 - 1945.876)	+	(10190.457 - 1983.023) )	/ 2 )
	=	314.356	/	( ( 8141.656	+	8207.434 )	/ 2 )
	=	314.356	/	8174.545
	=	3.85 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Akamai Technologies (NAS:AKAM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Akamai Technologies ROCE % Related Terms

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Akamai Technologies Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Akamai Technologies Inc (NAS:AKAM) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

1AKAM:Italy 0HBQ:UK AK3:Germany AK3:Germany A1KA34:Brazil

Address

145 Broadway, Cambridge, MA, USA, 02142

Website

https://www.akamai.com

Akamai operates a content delivery network, 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. The firm also offers security and cloud computing for its customers, and those businesses have grown to be bigger than the legacy CDN.

Executives

William Raymond Wagner	director	C/O VOCUS, INC., 4296 FORBES BOULEVARD, LANHAM MD 20706
Paul C Joseph	officer: EVP - Global Sales	C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Robert Blumofe	officer: EVP Platform	C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Anthony P Williams	officer: EVP and CHRO	C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
F Thomson Leighton	director, officer: Chief Scientist	500 TECHNOLOGY SQUARE, FIFTH FLOOR, CAMBRIDGE MA 02139
Adam Karon	officer: EVP & GM Media Division	C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Aaron Ahola	officer: SVP & General Counsel	C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Edward J Mcgowan	officer: Chief Financial Officer	C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Mani Sundaram	officer: EVP GSS and CIO	C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Kim Salem-jackson	officer: EVP, Chief Marketing Officer	C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Madhu Ranganathan	director	760 MARKET STREET, 4TH FLOOR, SAN FRANCISCO CA 94102
Verwaayen Bernardus Johannes Maria	director	55 GLENLAKE PARKWAY NE, ATLANTA GA 30328
Rick M Mcconnell	officer: EVP - Products and Development	LATITUDE, 2121 TASMAN DRIVE, SANTA CLARA CA 4089887256
Monte E Ford	director	C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Laura Howell	officer: VP, Chief Accounting Officer	C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142