Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', AKAM's return on equity was 14.4%, measuring profitability for shareholders. Industry average for Business Services in '2021' stood at 6.9%.
• In '2022', AKAM's return on equity was 11.8%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Business Services in '2022' stood at -11.8%. Industry average declined by 18.7% from previous year.
• In '2023', AKAM's return on equity was 12.2%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Business Services in '2023' stood at -14.4%. Industry average declined by 2.6% from previous year.
• In '2024', AKAM's return on equity was 10.7%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Business Services in '2024' stood at -17.0%. Industry average declined by 2.6% from previous year.
Overall, AKAM's return on equity has consistently declined during the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.