Cogent Communications Group Inc (CCOI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 833,927 | 563,244 | 555,263 | 470,867 | 492,038 |
| Property, plant and equipment | US$ in thousands | 1,537,820 | 544,430 | 457,880 | 430,335 | 368,929 |
| Fixed asset turnover | 0.54 | 1.03 | 1.21 | 1.09 | 1.33 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $833,927K ÷ $1,537,820K
= 0.54
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.
From the data provided:
- Dec 31, 2023: 0.61
- Dec 31, 2022: 1.10
- Dec 31, 2021: 1.29
- Dec 31, 2020: 1.32
- Dec 31, 2019: 1.48
The fixed asset turnover for Cogent Communications Holdings Inc has decreased over the past five years. This downward trend may suggest potential inefficiencies in utilizing the company's fixed assets to generate revenue. A fixed asset turnover ratio of 0.61 in 2023 indicates that for every dollar of fixed assets, the company generated $0.61 of revenue, which is lower compared to prior years.
Further analysis of the reasons behind this declining trend in fixed asset turnover should be conducted to identify issues and implement strategies to improve the efficiency of asset utilization.
Peer comparison
Dec 31, 2023