Cogent Communications Group Inc (CCOI)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 475,728 | 474,373 | 485,993 | 333,850 |
| Total current liabilities | US$ in thousands | 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 | 89,694 | 86,225 | 90,217 | 81,551 |
| Working capital turnover | 6.31 | 3.25 | 2.07 | 2.67 | 1.99 | 1.36 | 1.16 | 1.30 | 1.28 | 1.54 | 1.43 | — | 1.36 | 1.37 | 1.30 | 1.39 | 1.30 | 1.28 | 1.24 | 1.94 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $885,881K ÷ ($513,627K – $373,324K)
= 6.31
Cogent Communications Holdings Inc's working capital turnover has been fluctuating over the past eight quarters. The working capital turnover ratio measures the efficiency with which the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates better efficiency in managing working capital.
In Q4 2023, the working capital turnover ratio increased significantly to 6.71, indicating a substantial improvement in the company's ability to generate revenue using its working capital. This may suggest more effective management of current assets and liabilities to support sales activities.
On the other hand, in Q2 2023, the working capital turnover ratio dropped to 2.34, which was lower than the previous quarters. This decrease could indicate potential inefficiencies in utilizing working capital to drive sales during that period.
Overall, the trend in working capital turnover for Cogent Communications Holdings Inc shows some variability, with fluctuations from quarter to quarter. It would be important for the company to analyze the underlying factors contributing to these fluctuations to ensure effective working capital management and sustainable operational efficiency.
Peer comparison
Dec 31, 2023