Cogent Communications Group Inc (CCOI)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 783,813 | 940,922 | 599,604 | 589,797 | 568,103 |
| Total assets | US$ in thousands | 3,173,100 | 3,211,620 | 1,010,180 | 984,557 | 1,000,480 |
| Total asset turnover | 0.25 | 0.29 | 0.59 | 0.60 | 0.57 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $783,813K ÷ $3,173,100K
= 0.25
Total asset turnover is a key financial ratio that measures a company's efficiency in generating revenue from its total assets. For Cogent Communications Group Inc, the trend in total asset turnover from December 31, 2020, to December 31, 2024, shows some fluctuations.
In 2020, the total asset turnover ratio was 0.57, indicating that the company generated $0.57 in revenue for every $1 of total assets. This ratio improved slightly to 0.60 in 2021, suggesting a better utilization of assets to generate revenue. However, the ratio dipped back to 0.59 in 2022 before significantly dropping to 0.29 in 2023 and further declining to 0.25 in 2024.
The decreasing trend in total asset turnover may indicate inefficiencies in managing the company's assets to generate revenue. A lower ratio could imply that the company is struggling to efficiently utilize its assets to drive sales or that there may be issues with asset management or operational performance.
Further analysis is recommended to understand the reasons behind the decline in total asset turnover and to identify potential areas of improvement to enhance the company's asset utilization efficiency.
Peer comparison
Dec 31, 2024