Akamai's Debt Situation Compared to DigitalOcean:
- Total Debt: Akamai Technologies (AKAM) has consistently shown a decreasing trend in total debt, from $4.23 billion on September 30, 2022, to $4.17 billion on March 31, 20241. In contrast, DigitalOcean Holdings (DLO) has not disclosed its total debt, making a direct comparison challenging.
- Debt-to-Equity Ratio: Akamai's debt-to-equity ratio has fluctuated but generally remained below 0.82, the lowest being 0.54 on September 30, 20222. This indicates a more stable financial position compared to DigitalOcean's high debt-to-equity ratio of -6.46 as of June 30, 2024
- Financial Performance: Akamai's gross profit margin of 61% and net profit margin of 10% as of June 30, 20241, suggest a healthier profitability profile compared to DigitalOcean's gross profit margin of 37.33% and net profit margin of 17.98% as of June 30, 20243.
- Competitive Position: Akamai's competitive landscape is dominated by its robust network infrastructure, security features, and advanced technology solutions, which position it as a market leader4. DigitalOcean, while growing, operates in a crowded market and faces competition from larger, established players5.
In conclusion, Akamai appears to be in a safer financial position compared to DigitalOcean, with a lower debt burden, a more stable debt-to-equity ratio, and stronger profitability indicators. Akamai's competitive advantages and market leadership may provide a more stable foundation for its financial health.