Cogent Communications Group Inc (CCOI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 75,092 | 223,783 | 319,609 | 371,301 | 399,422 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 373,324 | 120,284 | 81,010 | 94,443 | 89,694 |
| Cash ratio | 0.20 | 1.86 | 3.95 | 3.93 | 4.45 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($75,092K
+ $—K)
÷ $373,324K
= 0.20
The cash ratio of Cogent Communications Holdings Inc has been decreasing over the past five years. In 2023, the company's cash ratio stood at 0.91, indicating that for every dollar of current liabilities, the company only had $0.91 of cash and cash equivalents on hand. This represents a significant decline from the cash ratio of 2.24 in 2022 and a substantial drop compared to 4.43 in 2021, 4.36 in 2020, and 4.85 in 2019.
A declining cash ratio could suggest that Cogent Communications Holdings Inc may be less able to cover its short-term obligations with its available cash and cash equivalents. It may also indicate that the company is experiencing difficulties in managing its liquidity position efficiently.
Investors and creditors may view a decreasing cash ratio as a potential red flag, as it could signal a heightened risk of liquidity problems for the company in meeting its short-term financial obligations. Further analysis of the company's cash management practices and overall financial health would be advisable to fully understand the reasons behind the declining cash ratio and its implications for Cogent Communications Holdings Inc.
Peer comparison
Dec 31, 2023