Cogent Communications Group Inc (CCOI)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 885,881 | 733,464 | 614,285 | 538,104 | 489,832 | 397,049 | 395,575 | 394,246 | 418,982 | 518,354 | 514,417 | 508,379 | 491,056 | 519,427 | 514,624 | 508,398 | 500,977 | 496,575 | 492,525 | 488,426 |
| Property, plant and equipment | US$ in thousands | 1,537,820 | 1,617,610 | 1,607,440 | 572,035 | 544,430 | 503,763 | 461,381 | 456,419 | 457,880 | 454,710 | 435,996 | 425,492 | 430,335 | 421,251 | 406,747 | 367,682 | 368,929 | 370,825 | 375,936 | 375,346 |
| Fixed asset turnover | 0.58 | 0.45 | 0.38 | 0.94 | 0.90 | 0.79 | 0.86 | 0.86 | 0.92 | 1.14 | 1.18 | 1.19 | 1.14 | 1.23 | 1.27 | 1.38 | 1.36 | 1.34 | 1.31 | 1.30 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $885,881K ÷ $1,537,820K
= 0.58
Fixed asset turnover is a financial ratio that evaluates a company's ability to generate revenue from its investment in fixed assets. In the case of Cogent Communications Holdings Inc, the fixed asset turnover ratio has varied over the past eight quarters.
The fixed asset turnover ratio for Cogent Communications was at its highest in Q1 2023 at 1.06, indicating that the company generated $1.06 in revenue for every dollar invested in fixed assets during that quarter. This suggests an efficient utilization of their fixed assets to generate sales.
However, the ratio has fluctuated in subsequent quarters, with a notable decline to 0.43 in Q2 2023 and 0.51 in Q3 2023. These lower ratios could indicate a decrease in the company's ability to generate revenue from its fixed assets during those periods.
Overall, it is important for Cogent Communications to monitor and improve its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and maximize revenue generation. Variations in the ratio could be due to changes in operational efficiency, asset management, or shifts in the company's business strategy, and further analysis is needed to understand the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2023