Akamai Technologies Gross Profit vs. Profit Margin
| AKAM Stock | USD 77.87 1.71 2.15% |
Gross Profit | First Reported 1999-03-31 | Previous Quarter 595.9 M | Current Value 605.6 M | Quarterly Volatility 201.6 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.78 | 0.5939 |
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For Akamai Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Akamai Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Akamai Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Akamai Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Akamai Technologies over time as well as its relative position and ranking within its peers.
Akamai |
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 (0.10) | Earnings Share 3.33 | Revenue Per Share | Quarterly Revenue Growth 0.025 | Return On Assets |
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.
Akamai Technologies Profit Margin vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Akamai Technologies's current stock value. Our valuation model uses many indicators to compare Akamai Technologies value to that of its competitors to determine the firm's financial worth. Akamai Technologies is rated second in gross profit category among its peers. It is rated below average in profit margin category among its peers . The ratio of Gross Profit to Profit Margin for Akamai Technologies is about 18,738,141,597 . At this time, Akamai Technologies' Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Akamai Technologies by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Akamai Profit Margin vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Akamai Technologies |
| = | 2.37 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Akamai Technologies |
| = | 0.13 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Akamai Profit Margin Comparison
Akamai Technologies is currently under evaluation in profit margin category among its peers.
Akamai Technologies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Akamai Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Akamai Technologies will eventually generate negative long term returns. The profitability progress is the general direction of Akamai Technologies' change in net profit over the period of time. It can combine multiple indicators of Akamai Technologies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -156 M | -148.2 M | |
| Operating Income | 533.4 M | 560.1 M | |
| Net Income | 504.9 M | 530.2 M | |
| Income Tax Expense | -82.1 M | -78 M | |
| Income Before Tax | 587 M | 616.4 M | |
| Total Other Income Expense Net | 53.6 M | 56.3 M | |
| Net Income Applicable To Common Shares | 602.2 M | 311.5 M | |
| Net Income From Continuing Ops | 504.9 M | 395.2 M | |
| Non Operating Income Net Other | 3.9 M | 3.7 M | |
| Interest Income | 100.3 M | 105.3 M | |
| Net Interest Income | 73.2 M | 76.8 M | |
| Change To Netincome | 183 M | 151.6 M | |
| Net Income Per Share | 3.34 | 3.50 | |
| Income Quality | 3.01 | 1.57 | |
| Net Income Per E B T | 0.86 | 1.03 |
Akamai Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Akamai Technologies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Akamai Technologies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Akamai Technologies' important profitability drivers and their relationship over time.
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To fully project Akamai Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Akamai Technologies at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Akamai Technologies' income statement, its balance sheet, and the statement of cash flows.