Cogent Communications Group Inc (CCOI)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 198,486 | 279,191 | 426,241 | 163,274 | 113,781 | 109,661 | 192,366 | 184,140 | 223,783 | 268,945 | 312,051 | 281,485 | 319,609 | 351,879 | 373,963 | 237,980 | 371,301 | 393,293 | 417,026 | 375,116 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 253,336 | 280,633 | 312,960 | 420,609 | 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 |
| Cash ratio | 0.78 | 0.99 | 1.36 | 0.39 | 0.30 | 0.31 | 0.46 | 1.45 | 1.86 | 2.21 | 3.22 | 3.07 | 3.95 | 3.55 | 3.99 | 0.56 | 3.93 | 4.13 | 4.17 | 4.16 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($198,486K
+ $—K)
÷ $253,336K
= 0.78
The cash ratio is a liquidity ratio that measures a company's ability to pay off its current liabilities using only its cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.
Based on the data provided for Cogent Communications Group Inc:
- The cash ratio remained relatively stable around the range of 3.9 to 4.2 from March 2020 to June 2021, indicating a healthy cash position during this period.
- There was a noticeable decline in the cash ratio from March 2021 to September 2022, dropping from 0.56 to 2.21, suggesting a decrease in the company's ability to cover its short-term liabilities solely with cash.
- The cash ratio continued to decrease from September 2022 to December 2024, ranging between 0.30 to 1.36. This downward trend may indicate potential cash flow challenges or increased short-term obligations for the company.
- Overall, the decreasing trend in the cash ratio from March 2021 to December 2024 highlights a potential liquidity risk for Cogent Communications Group Inc, as the company's ability to meet its short-term obligations using cash and cash equivalents has weakened over time. Further analysis of the company's cash management and operational efficiency may be required to address these liquidity concerns.
Peer comparison
Dec 31, 2024