Cogent Communications Group Inc (CCOI)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — 14.55 11.64 8.56 8.10 7.61 10.96 13.71 46.05 134.35 — — — — — — — — — —
Receivables turnover 6.54 8.41 6.89 11.91 11.10 9.14 8.88 9.46 9.99 11.87 11.76 12.33 11.11 12.35 12.69 11.83 12.37 12.03 12.11 12.44
Payables turnover 18.31 27.95 19.83 23.26 15.52 22.62 27.95 30.08 34.82 35.51 28.10 33.22 40.97 29.68 28.86 26.75 30.71 37.87 31.79 37.54
Working capital turnover 6.31 3.25 2.07 2.67 1.99 1.36 1.16 1.30 1.28 1.54 1.43 — 1.36 1.37 1.30 1.39 1.30 1.28 1.24 1.94

Activity ratios provide insights into how effectively a company is managing its assets and liabilities to generate revenue.

1. Receivables Turnover:
- The receivables turnover ratio measures how many times a company collects its accounts receivable during a period.
- Cogent Communications has shown a fluctuating trend in receivables turnover over the past eight quarters, ranging from 6.95 to 14.21.
- A higher ratio indicates that the company is collecting cash more efficiently from its customers.
- The decreasing trend in receivables turnover in recent quarters may suggest potential issues with collecting payments from customers or changes in credit policies.

2. Payables Turnover:
- The payables turnover ratio reflects how efficiently a company is managing its accounts payable by paying its suppliers.
- Cogent Communications has shown a varying payables turnover ratio over the given quarters, ranging from 8.39 to 16.42.
- A higher turnover ratio indicates that the company is taking longer to pay its suppliers, which can be beneficial for cash flow management.
- The fluctuations in payables turnover may indicate changes in payment terms or the company's ability to negotiate favorable terms with suppliers.

3. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company generates revenue from its working capital.
- Cogent Communications has shown a general increasing trend in working capital turnover over the past eight quarters, from 1.74 to 6.71.
- A higher working capital turnover ratio suggests that the company is effectively utilizing its working capital to generate sales.
- The increasing trend in working capital turnover indicates improved efficiency in utilizing working capital to support sales growth.

In conclusion, analyzing Cogent Communications' activity ratios indicates fluctuations in the efficiency of managing receivables and payables, while showing an improving trend in working capital turnover. Further investigation into the underlying reasons for these fluctuations would be beneficial to understand the company's operational efficiency and financial performance better.

Average number of days

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
Days of inventory on hand (DOH) days — 25.08 31.36 42.65 45.05 47.99 33.30 26.62 7.93 2.72 — — — — — — — — — —
Days of sales outstanding (DSO) days 55.82 43.38 53.01 30.64 32.88 39.93 41.12 38.57 36.53 30.75 31.04 29.60 32.84 29.55 28.77 30.85 29.50 30.35 30.15 29.34
Number of days of payables days 19.94 13.06 18.40 15.69 23.51 16.13 13.06 12.13 10.48 10.28 12.99 10.99 8.91 12.30 12.65 13.65 11.89 9.64 11.48 9.72

Days of inventory on hand (DOH) for Cogent Communications Holdings Inc are not provided in the table, so we cannot analyze this activity ratio.

Days of sales outstanding (DSO) increased significantly in Q4 2023 compared to the previous quarters, reaching 52.55 days. This indicates that, on average, it took the company 52.55 days to collect its accounts receivable from customers in Q4 2023. The trend shows an increasing collection period that may suggest potential issues with timely collections or changes in customer payment behavior.

Number of days of payables decreased in Q4 2023 to 32.43 days, compared to Q3 2023. This decrease in the number of days of payables suggests that Cogent Communications Holdings Inc took fewer days to settle its outstanding payables to suppliers. A lower number of days of payables may indicate efficient cash management or potentially improved relationships with suppliers.

Overall, the analysis of DSO and number of days of payables indicates that Cogent Communications Holdings Inc experienced challenges in managing its working capital in Q4 2023, with longer collection periods from customers but improved efficiency in settling payables. It would be important for the company to focus on improving collection processes to optimize working capital management in the future.

Long-term

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
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
Total asset turnover 0.28 0.25 0.19 0.54 0.48 0.39 0.39 0.41 0.43 0.51 0.51 0.60 0.49 0.52 0.51 0.56 0.54 0.53 0.52 0.61

The fixed asset turnover ratio for Cogent Communications Holdings Inc has been fluctuating over the quarters, ranging from 0.43 to 1.30. This ratio indicates that on average, the company generates $0.43 to $1.30 in revenue for each dollar invested in fixed assets. A higher fixed asset turnover ratio is generally preferred as it demonstrates the company's ability to efficiently utilize its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also varied over the quarters, ranging from 0.22 to 0.61. This ratio signifies how effectively the company is utilizing all of its assets to generate revenue. A lower total asset turnover ratio may indicate that the company is not effectively using its assets to generate sales.

Overall, Cogent Communications Holdings Inc's long-term activity ratios suggest that the company's efficiency in generating revenue from its fixed assets has varied, and its overall asset turnover has also fluctuated. Further analysis and comparison with industry benchmarks would be necessary to assess the company's performance in utilizing its assets effectively.