Cogent Communications Group Inc (CCOI)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 902,740 | 422,338 | 415,141 | 400,483 | 386,537 |
| Payables | US$ in thousands | 48,356 | 27,208 | 11,923 | 9,775 | 11,075 |
| Payables turnover | 18.67 | 15.52 | 34.82 | 40.97 | 34.90 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $902,740K ÷ $48,356K
= 18.67
The payables turnover ratio of Cogent Communications Holdings Inc has fluctuated over the past five years, ranging from a low of 8.39 in 2018 to a high of 22.42 in 2019. The ratio measures how efficiently the company is managing its accounts payable by calculating the number of times the company pays off its suppliers in a given period. A higher turnover ratio indicates that the company is paying its suppliers more frequently, which can be beneficial in terms of managing cash flow and maintaining good relationships with suppliers.
In 2023, the payables turnover ratio decreased to 11.25 from 8.39 in 2022, indicating a slower rate of paying off suppliers compared to the previous year. This may suggest that the company is taking longer to settle its payables or is holding onto its cash for longer periods. It is important for the company to monitor this ratio closely to ensure that payables are being managed effectively and efficiently.
Peer comparison
Dec 31, 2023