Akamai Income Before Tax vs Gross Profit Analysis

AKAM Stock  USD 91.08  3.12  3.55%   
Akamai Technologies financial indicator trend analysis is way more than just evaluating Akamai Technologies prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Akamai Technologies is a good investment. Please check the relationship between Akamai Technologies Income Before Tax and its Gross Profit accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Akamai Technologies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
To learn how to invest in Akamai Stock, please use our How to Invest in Akamai Technologies guide.

Income Before Tax vs Gross Profit

Income Before Tax vs Gross Profit Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Akamai Technologies Income Before Tax account and Gross Profit. At this time, the significance of the direction appears to have almost identical trend.
The correlation between Akamai Technologies' Income Before Tax and Gross Profit is 0.91. Overlapping area represents the amount of variation of Income Before Tax that can explain the historical movement of Gross Profit in the same time period over historical financial statements of Akamai Technologies, assuming nothing else is changed. The correlation between historical values of Akamai Technologies' Income Before Tax and Gross Profit is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Income Before Tax of Akamai Technologies are associated (or correlated) with its Gross Profit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Gross Profit has no effect on the direction of Income Before Tax i.e., Akamai Technologies' Income Before Tax and Gross Profit go up and down completely randomly.

Correlation Coefficient

0.91
Relationship DirectionPositive 
Relationship StrengthVery Strong

Income Before Tax

Income Before Tax which can also be referred as pre-tax income is reported on Akamai Technologies income statement and is an important metric when analyzing Akamai Technologies profitability. Accounting techniques because taxes can be complex, and not perfectly consistent from one company to company, an analyst may use pre-tax income as a more stable measure of profitability.

Gross Profit

Gross profit is a required income statement account that reflects total revenue of Akamai Technologies minus its cost of goods sold. It is profit before Akamai Technologies operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.
Most indicators from Akamai Technologies' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Akamai Technologies current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Akamai Technologies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
To learn how to invest in Akamai Stock, please use our How to Invest in Akamai Technologies guide.At this time, Akamai Technologies' Selling General Administrative is very stable compared to the past year. As of the 22nd of November 2024, Enterprise Value Over EBITDA is likely to grow to 18.70, while Tax Provision is likely to drop about 72.9 M.
 2021 2022 2023 2024 (projected)
Gross Profit2.2B2.2B2.3B2.4B
Total Revenue3.5B3.6B3.8B4.0B

Akamai Technologies fundamental ratios Correlations

0.830.740.980.940.840.960.390.990.480.320.310.490.910.00.980.870.650.930.230.960.650.780.990.960.42
0.830.660.760.70.680.830.740.750.780.220.260.690.82-0.020.810.610.840.70.170.760.820.770.850.730.81
0.740.660.690.540.420.750.50.690.630.570.580.640.750.250.620.420.820.570.50.580.370.830.80.580.56
0.980.760.690.970.890.920.290.980.390.180.160.420.88-0.140.980.870.570.910.090.970.610.740.960.980.32
0.940.70.540.970.940.880.180.970.260.060.020.30.82-0.260.980.930.440.93-0.040.980.620.640.891.00.22
0.840.680.420.890.940.760.160.870.19-0.21-0.240.180.71-0.510.920.860.360.89-0.310.90.540.540.80.920.29
0.960.830.750.920.880.760.450.930.580.360.370.620.870.060.930.770.720.860.280.910.70.830.950.90.44
0.390.740.50.290.180.160.450.260.910.350.390.660.380.170.340.130.830.230.330.310.650.440.430.240.78
0.990.750.690.980.970.870.930.260.340.280.250.370.88-0.050.980.920.530.960.180.970.570.710.960.980.32
0.480.780.630.390.260.190.580.910.340.370.460.920.530.260.420.110.950.220.370.350.720.70.540.320.76
0.320.220.570.180.06-0.210.360.350.280.370.970.320.320.850.150.160.410.220.980.190.090.280.350.120.19
0.310.260.580.160.02-0.240.370.390.250.460.970.440.340.910.120.080.470.170.990.140.090.350.370.080.27
0.490.690.640.420.30.180.620.660.370.920.320.440.580.290.420.080.90.190.350.340.670.820.560.350.61
0.910.820.750.880.820.710.870.380.880.530.320.340.580.080.870.740.690.790.260.830.60.790.940.840.54
0.0-0.020.25-0.14-0.26-0.510.060.17-0.050.260.850.910.290.08-0.18-0.170.19-0.140.93-0.16-0.080.120.06-0.210.07
0.980.810.620.980.980.920.930.340.980.420.150.120.420.87-0.180.910.570.940.050.990.70.710.940.990.36
0.870.610.420.870.930.860.770.130.920.110.160.080.080.74-0.170.910.270.950.040.940.530.440.810.930.14
0.650.840.820.570.440.360.720.830.530.950.410.470.90.690.190.570.270.410.380.510.690.830.710.490.77
0.930.70.570.910.930.890.860.230.960.220.220.170.190.79-0.140.940.950.410.110.940.490.550.890.940.31
0.230.170.50.09-0.04-0.310.280.330.180.370.980.990.350.260.930.050.040.380.110.080.030.250.280.020.18
0.960.760.580.970.980.90.910.310.970.350.190.140.340.83-0.160.990.940.510.940.080.670.640.920.990.28
0.650.820.370.610.620.540.70.650.570.720.090.090.670.6-0.080.70.530.690.490.030.670.630.620.640.47
0.780.770.830.740.640.540.830.440.710.70.280.350.820.790.120.710.440.830.550.250.640.630.830.670.55
0.990.850.80.960.890.80.950.430.960.540.350.370.560.940.060.940.810.710.890.280.920.620.830.920.51
0.960.730.580.981.00.920.90.240.980.320.120.080.350.84-0.210.990.930.490.940.020.990.640.670.920.25
0.420.810.560.320.220.290.440.780.320.760.190.270.610.540.070.360.140.770.310.180.280.470.550.510.25
Click cells to compare fundamentals

Akamai Technologies Account Relationship Matchups

Akamai Technologies fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets7.0B7.8B8.1B8.3B9.9B10.4B
Total Current Liabilities693.3M758.2M790.3M818.9M836.0M877.8M
Total Stockholder Equity3.7B4.3B4.5B4.4B4.6B2.3B
Property Plant And Equipment Net1.9B2.3B2.4B2.4B2.7B2.9B
Net Debt2.1B2.4B2.3B2.6B4.0B4.2B
Retained Earnings48.0M605.1M1.3B1.9B2.5B2.6B
Accounts Payable138.9M118.5M109.9M145.4M146.9M154.3M
Cash543.7M352.9M536.7M542.3M489.5M315.7M
Non Current Assets Total4.8B5.8B6.2B6.3B8.1B8.5B
Cash And Short Term Investments1.5B1.1B1.1B1.1B864.4M690.9M
Common Stock Total Equity1.6M1.6M1.6M1.6M1.8M1.7M
Common Stock Shares Outstanding164.6M165.2M165.8M160.5M155.4M166.9M
Short Term Investments993.2M745.2M541.5M563.0M375.0M390.4M
Liabilities And Stockholders Equity7.0B7.8B8.1B8.3B9.9B10.4B
Other Current Assets142.7M267.8M166.3M185.0M216.1M226.9M
Other Stockholder Equity3.7B3.7B3.3B2.6B2.2B4.0B
Total Liab3.3B3.5B3.6B3.9B5.3B5.6B
Property Plant And Equipment Gross1.2B2.3B2.4B2.4B5.6B5.9B
Total Current Assets2.2B1.9B1.9B2.0B1.8B1.1B
Accumulated Other Comprehensive Income(45.1M)(20.2M)(69.1M)(140.3M)(95.3M)(90.6M)
Intangible Assets179.4M234.7M313.2M441.7M536.1M563.0M
Common Stock1.6M1.6M1.6M1.6M1.5M1.7M
Short Long Term Debt Total2.7B2.8B2.9B3.2B4.5B4.8B
Other Current Liab343.7M167.2M135.7M69.0M250.3M262.9M
Non Currrent Assets Other173.1M147.6M142.3M116.5M124.3M102.6M
Net Receivables551.9M660.1M675.9M679.2M724.3M760.5M
Non Current Liabilities Total2.7B2.8B2.8B3.1B4.5B4.7B
Short Term Debt139.5M309.6M351.4M392.2M222.9M168.2M
Other Liab123.6M132.6M135.1M145.8M167.7M176.1M
Current Deferred Revenue71.2M76.6M86.5M105.1M107.5M112.9M
Other Assets214.9M1.7B310.6M454.2M522.3M548.4M
Long Term Debt1.8B1.9B2.0B2.3B3.5B3.7B
Property Plant Equipment1.2B1.5B2.4B2.4B2.7B2.8B
Good Will1.6B1.7B2.2B2.8B2.9B3.0B
Net Tangible Assets1.9B2.3B2.1B1.2B1.3B1.9B
Retained Earnings Total Equity(430.9M)48.0M605.1M1.3B1.4B1.5B
Capital Surpluse3.7B3.7B3.7B3.3B3.0B3.4B
Deferred Long Term Liab29.2M37.5M30.4M29.1M33.4M17.1M
Long Term Investments835.4M1.4B1.1B320.5M1.4B815.0M

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When determining whether Akamai Technologies is a strong investment it is important to analyze Akamai Technologies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Akamai Technologies' future performance. For an informed investment choice regarding Akamai Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Akamai Technologies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
To learn how to invest in Akamai Stock, please use our How to Invest in Akamai Technologies guide.
You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Is Internet Services & Infrastructure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Akamai Technologies. If investors know Akamai will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Akamai Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.64)
Earnings Share
3.38
Revenue Per Share
26.167
Quarterly Revenue Growth
0.041
Return On Assets
0.0419
The market value of Akamai Technologies is measured differently than its book value, which is the value of Akamai that is recorded on the company's balance sheet. Investors also form their own opinion of Akamai Technologies' value that differs from its market value or its book value, called intrinsic value, which is Akamai Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Akamai Technologies' market value can be influenced by many factors that don't directly affect Akamai Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Akamai Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Akamai Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Akamai Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.