Cogent Communications Group Inc (CCOI)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 783,813 | 940,922 | 599,604 | 589,797 | 568,103 |
| Property, plant and equipment | US$ in thousands | — | — | 544,430 | 457,880 | 430,335 |
| Fixed asset turnover | — | — | 1.10 | 1.29 | 1.32 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $783,813K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company generates revenue from its investment in fixed assets. Looking at the trend for Cogent Communications Group Inc over the years, we observe a slight decline in the fixed asset turnover ratio from 1.32 in December 2020 to 1.29 in December 2021, indicating a potential decrease in the company's ability to generate sales from its fixed assets.
However, a more noticeable drop is seen in December 2022, with the fixed asset turnover ratio falling to 1.10. This significant decrease may suggest a potential inefficiency in utilizing the company's fixed assets to generate revenue during that period.
Unfortunately, data is not available for the years 2023 and 2024. The absence of data for these years makes it challenging to assess whether the declining trend in the fixed asset turnover ratio continued or if there was a reversal in the company's ability to generate sales from its fixed assets during those years.
Overall, the decreasing trend in the fixed asset turnover ratio raises concerns about Cogent Communications Group Inc's efficiency in utilizing its fixed assets to generate revenue. Further analysis and investigation would be necessary to understand the underlying reasons for this trend and to determine any potential impact on the company's financial performance and operational efficiency in the long run.
Peer comparison
Dec 31, 2024