Cogent Communications Group Inc (CCOI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 15,336 | 75,092 | 223,783 | 319,609 | 371,301 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 82,465 | 373,324 | 120,284 | 81,010 | 94,443 |
| Cash ratio | 0.19 | 0.20 | 1.86 | 3.95 | 3.93 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($15,336K
+ $—K)
÷ $82,465K
= 0.19
The cash ratio of Cogent Communications Group Inc has shown a stable level over the past few years, starting at 3.93 in December 2020 and slightly increasing to 3.95 by December 2021. However, there was a significant decrease in the cash ratio to 1.86 by December 2022, followed by a substantial decline to 0.20 by December 2023, and a further drop to 0.19 by December 2024.
The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, providing a cushion for unexpected expenses or downturns in business.
The decreasing trend in Cogent Communications Group Inc's cash ratio over the years may raise concerns about its liquidity position. It is important for the company to closely monitor its cash management strategies and ensure it maintains adequate liquidity to meet its short-term obligations and sustain its operations effectively.
Peer comparison
Dec 31, 2024