Cogent Communications Group Inc (CCOI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 513,627 | 365,913 | 409,577 | 456,337 | 475,728 |
| Total current liabilities | US$ in thousands | 373,324 | 120,284 | 81,010 | 94,443 | 89,694 |
| Current ratio | 1.38 | 3.04 | 5.06 | 4.83 | 5.30 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $513,627K ÷ $373,324K
= 1.38
The current ratio of Cogent Communications Holdings Inc has exhibited a declining trend over the past five years, dropping from 5.30 in 2019 to 1.38 in 2023. This declining trend indicates a weakening liquidity position of the company, as it has less current assets to cover its current liabilities in the most recent year.
A current ratio below 1 suggests that the company may have difficulties meeting its short-term obligations with its current assets alone. While a high current ratio is generally seen as favorable, indicating a strong ability to cover short-term liabilities, Cogent Communications Holdings Inc's declining current ratio may raise concerns about its liquidity management and ability to meet its short-term financial obligations in the future.
Further investigation into the components of current assets and current liabilities would provide more insights into the specific reasons behind the decreasing current ratio and help in assessing the company's overall financial health and liquidity position.
Peer comparison
Dec 31, 2023