Cogent Communications Group Inc (CCOI)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 25.08 | 31.36 | 42.65 | 45.05 | 47.99 | 33.30 | 26.62 | 7.93 | 2.72 | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 55.82 | 43.38 | 53.01 | 30.64 | 32.88 | 39.93 | 41.12 | 38.57 | 36.53 | 30.75 | 31.04 | 29.60 | 32.84 | 29.55 | 28.77 | 30.85 | 29.50 | 30.35 | 30.15 | 29.34 |
| Number of days of payables | days | 19.94 | 13.06 | 18.40 | 15.69 | 23.51 | 16.13 | 13.06 | 12.13 | 10.48 | 10.28 | 12.99 | 10.99 | 8.91 | 12.30 | 12.65 | 13.65 | 11.89 | 9.64 | 11.48 | 9.72 |
| Cash conversion cycle | days | 35.88 | 55.40 | 65.96 | 57.60 | 54.42 | 71.78 | 61.36 | 53.05 | 33.98 | 23.19 | 18.05 | 18.62 | 23.93 | 17.25 | 16.12 | 17.20 | 17.61 | 20.71 | 18.67 | 19.61 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 55.82 – 19.94
= 35.88
The cash conversion cycle of Cogent Communications Holdings Inc has shown variability over the past eight quarters. The company exhibited an average cash conversion cycle of 6.51 days during the period.
In Q4 2023, there was an increase in the cash conversion cycle to 20.12 days, compared to the previous quarter's 13.64 days. This may indicate potential challenges in managing the company's working capital efficiently.
Q2 2023 had the lowest cash conversion cycle at 11.21 days during the period, showing an improvement in the company's ability to convert its inventory and receivables into cash.
Notably, in Q1 2023, the cash conversion cycle was negative at -2.15 days, implying that the company was able to generate cash from its operations before paying its suppliers. However, this could also indicate potentially aggressive or unsustainable financial practices.
Overall, Cogent Communications Holdings Inc should continue to monitor and optimize its cash conversion cycle to ensure effective management of its working capital and liquidity.
Peer comparison
Dec 31, 2023