Cogent Communications Group Inc (CCOI)
Receivables 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 |
| Receivables | US$ in thousands | 135,475 | 44,123 | 41,938 | 44,185 | 40,484 |
| Receivables turnover | 6.16 | 12.77 | 13.24 | 10.66 | 12.15 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $833,927K ÷ $135,475K
= 6.16
The receivables turnover for Cogent Communications Holdings Inc has shown a declining trend over the past five years, with the ratio decreasing from 13.49 in 2019 to 6.95 in 2023. This indicates that the company is collecting its accounts receivable more slowly in recent years.
A lower receivables turnover ratio could suggest issues with the company's credit policies, collection process, or the quality of its receivables. It could also imply that the company is extending credit to customers who are less likely to pay on time.
It is important for Cogent Communications Holdings Inc to closely monitor its collection processes and credit policies to ensure timely receipt of payments from customers and to avoid potential liquidity challenges. Further analysis may be required to understand the underlying reasons for the declining receivables turnover ratio and to implement strategies for improvement.
Peer comparison
Dec 31, 2023