Cogent Communications Group Inc (CCOI)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,036,104 | 1,055,912 | 1,074,139 | 1,053,502 | 940,922 | 820,802 | 695,373 | 604,017 | 599,604 | 594,833 | 592,760 | 592,189 | 589,791 | 586,484 | 580,859 | 573,970 | 568,108 | 564,499 | 559,139 | 552,938 |
| Total current assets | US$ in thousands | 482,101 | 569,403 | 689,475 | 473,161 | 513,627 | 581,251 | 713,189 | 328,797 | 365,913 | 413,504 | 437,469 | 395,190 | 409,577 | 436,118 | 454,555 | 316,270 | 456,337 | 475,353 | 497,116 | 456,562 |
| Total current liabilities | US$ in thousands | 253,336 | 280,633 | 312,960 | 420,609 | 373,324 | 355,662 | 415,824 | 127,422 | 120,284 | 121,607 | 96,879 | 91,605 | 81,010 | 98,996 | 93,726 | 422,709 | 94,443 | 95,247 | 100,063 | 90,140 |
| Working capital turnover | 4.53 | 3.66 | 2.85 | 20.05 | 6.71 | 3.64 | 2.34 | 3.00 | 2.44 | 2.04 | 1.74 | 1.95 | 1.80 | 1.74 | 1.61 | — | 1.57 | 1.49 | 1.41 | 1.51 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,036,104K ÷ ($482,101K – $253,336K)
= 4.53
Cogent Communications Group Inc's working capital turnover has shown a positive trend over the period under review. The ratio has increased steadily from 1.51 on March 31, 2020, to 4.53 on December 31, 2024, indicating a significant improvement in the company's efficiency in utilizing its working capital to generate sales revenue.
The working capital turnover ratio measures how effectively a company is able to generate sales revenue from its working capital. A higher ratio suggests that the company is more efficient in managing its working capital and converting it into sales. In this case, the company has demonstrated a substantial improvement in this aspect over the years, reaching a peak of 20.05 on March 31, 2024, before slightly decreasing in the subsequent periods.
Overall, the increasing trend in Cogent Communications Group Inc's working capital turnover ratio indicates an improved efficiency in utilizing its working capital resources to drive sales growth, which is a positive indicator of the company's operational performance and financial health.
Peer comparison
Dec 31, 2024