Cogent Communications Group Inc (CCOI)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 83.40 | 14.54 | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 83.40 | 14.54 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle is a metric that indicates the efficiency with which a company manages its working capital, representing the number of days it takes for a firm to convert its investments in inventory and other resources back into cash.
Analyzing the data provided for Cogent Communications Group Inc, we observe fluctuations in the cash conversion cycle over the years. As of December 31, 2020, the company had a cash conversion cycle of 0.00 days, implying that it efficiently converted its investments into cash.
However, the cash conversion cycle increased significantly to 14.54 days by December 31, 2021, indicating a slight delay in the company's ability to convert its resources into cash. This trend continued into December 31, 2022, when the cash conversion cycle spiked to 83.40 days, suggesting a notable inefficiency in the company's working capital management during that period.
Interestingly, the cash conversion cycle reverted to 0.00 days by December 31, 2023 and remained at this level by December 31, 2024. This could imply that the company improved its working capital management and returned to a more efficient cash conversion cycle.
Overall, the fluctuation in Cogent Communications Group Inc's cash conversion cycle highlights the importance of effective working capital management in optimizing cash flows and financial performance.
Peer comparison
Dec 31, 2024