Cogent Communications Group Inc (CCOI)
Receivables 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 |
| Receivables | US$ in thousands | 135,475 | 87,170 | 89,207 | 45,172 | 44,123 | 43,433 | 44,568 | 41,662 | 41,938 | 43,672 | 43,751 | 41,234 | 44,185 | 42,053 | 40,560 | 42,964 | 40,484 | 41,292 | 40,684 | 39,258 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $885,881K ÷ $135,475K
= 6.54
Cogent Communications Holdings Inc's receivables turnover ratio has experienced fluctuations over the past eight quarters. The ratio measures the efficiency at which the company is able to collect its accounts receivable during a specific period. A higher turnover ratio is generally preferable as it indicates that the company is collecting its receivables more quickly.
In Q1 2022, the receivables turnover ratio was at its highest at 14.21, indicating that Cogent Communications was able to convert its accounts receivable into cash 14.21 times during that quarter. However, in the following quarters, the ratio saw a decline before reaching its lowest point of 6.95 in Q4 2023.
The decrease in the receivables turnover ratio from Q1 2022 to Q4 2023 suggests that Cogent Communications may be taking longer to collect its accounts receivable, which could potentially impact the company's cash flow and liquidity. It is essential for the company to analyze the reasons behind this trend and take appropriate actions to improve its collections process and maintain a healthy level of working capital.
Peer comparison
Dec 31, 2023