Cogent Communications Group Inc (CCOI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 53,090 | 513,627 | 365,913 | 409,577 | 456,337 |
| Total current liabilities | US$ in thousands | 82,465 | 373,324 | 120,284 | 81,010 | 94,443 |
| Current ratio | 0.64 | 1.38 | 3.04 | 5.06 | 4.83 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $53,090K ÷ $82,465K
= 0.64
The current ratio of Cogent Communications Group Inc has shown a fluctuating trend over the past five years. The ratio stood at a healthy 4.83 as of December 31, 2020, indicating a strong ability to cover its short-term obligations. It further increased to 5.06 by December 31, 2021, demonstrating an improvement in liquidity position. However, there was a notable decline in the current ratio to 3.04 by the end of 2022, suggesting a potential strain on the company's ability to meet its current liabilities. Subsequently, the ratio decreased significantly to 1.38 by December 31, 2023, signaling a potential liquidity challenge.
As of the most recent data available, the current ratio of Cogent Communications Group Inc dropped further to 0.64 by December 31, 2024. This sharp decline raises concerns about the company's short-term solvency and ability to meet its current obligations using its current assets alone. It may indicate potential difficulties in managing short-term liquidity and meeting short-term financial commitments. Management should carefully assess and address the factors contributing to this declining trend to ensure the company's financial stability and operational continuity.
Peer comparison
Dec 31, 2024