Cogent Communications Group Inc (CCOI)
Total asset 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 |
| Total assets | US$ in thousands | 3,211,620 | 1,010,180 | 984,557 | 1,000,480 | 932,124 |
| Total asset turnover | 0.26 | 0.56 | 0.56 | 0.47 | 0.53 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $833,927K ÷ $3,211,620K
= 0.26
The total asset turnover ratio measures a company's efficiency in generating sales revenue relative to its total assets. A higher ratio indicates better asset utilization.
Looking at Cogent Communications Holdings Inc's total asset turnover over the past five years, we see a decreasing trend. The ratio decreased from 0.59 in 2019 to 0.29 in 2023. This suggests that the company's ability to generate sales revenue from its total assets has declined over the period, indicating a potential inefficiency in asset utilization.
The company's total asset turnover was relatively stable between 2020 and 2022, ranging from 0.57 to 0.60. However, the significant decrease in 2023 to 0.29 raises concerns about the company's operational efficiency and ability to optimize its asset base effectively.
It would be advisable for Cogent Communications Holdings Inc to closely examine its asset management strategies and consider ways to improve the utilization of its assets to enhance revenue generation and overall performance.
Peer comparison
Dec 31, 2023