GURUFOCUS.COM » STOCK LIST » Technology » Software » Akamai Technologies Inc (NAS:AKAM) » Definitions » 5-Year ROIIC %

AKAM (Akamai Technologies) 5-Year ROIIC % : 4.71% (As of Dec. 2023)


View and export this data going back to 1999. Start your Free Trial

What is Akamai Technologies 5-Year ROIIC %?

5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year. Akamai Technologies's 5-Year ROIIC % for the quarter that ended in Dec. 2023 was 4.71%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Akamai Technologies's 5-Year ROIIC % or its related term are showing as below:

AKAM's 5-Year ROIIC % is ranked better than
50.27% of 2395 companies
in the Software industry
Industry Median: 4.49 vs AKAM: 4.71

Akamai Technologies 5-Year ROIIC % Historical Data

The historical data trend for Akamai Technologies's 5-Year ROIIC % 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.

* Premium members only.

Akamai Technologies 5-Year ROIIC % Chart

Akamai Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
5-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.64 10.61 12.35 9.53 4.71

Akamai Technologies Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
5-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 4.71 - - -

Competitive Comparison of Akamai Technologies's 5-Year ROIIC %

For the Software - Infrastructure subindustry, Akamai Technologies's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % Distribution in the Software Industry

For the Software industry and Technology sector, Akamai Technologies's 5-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Akamai Technologies's 5-Year ROIIC % falls into.



Akamai Technologies 5-Year ROIIC % Calculation

Akamai Technologies's 5-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:

5-Year ROIIC %=5-Year Incremental Net Operating Profit After Taxes (NOPAT)**/5-Year Incremental Invested Capital**
=( 588.760866 (Dec. 2023) - 361.8404244 (Dec. 2018) )/( 8536.49 (Dec. 2023) - 3719.804 (Dec. 2018) )
=226.9204416/4816.686
=4.71%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Akamai Technologies  (NAS:AKAM) 5-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Akamai Technologies 5-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of Akamai Technologies's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Akamai Technologies Business Description

Address
145 Broadway, Cambridge, MA, USA, 02142
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