Cogent Communications Group Inc (CCOI)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.90 | 2.03 | 2.20 | 1.12 | 1.38 | 1.63 | 1.72 | 2.58 | 3.04 | 3.40 | 4.52 | 4.31 | 5.06 | 4.41 | 4.85 | 0.75 | 4.83 | 4.99 | 4.97 | 5.07 |
| Quick 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 |
| 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 |
The liquidity ratios of Cogent Communications Group Inc, as indicated by the current ratio, quick ratio, and cash ratio, exhibit fluctuations over the reporting periods from March 2020 to December 2024.
The current ratio, a measure of the company's ability to meet short-term obligations with its current assets, stood relatively strong above 4.5 from March 2020 to June 2022. However, there was a notable decline in the current ratio to 1.12 by March 31, 2024, indicating a potential strain in meeting short-term liabilities with current assets.
The quick ratio, which provides insight into the company's ability to cover short-term liabilities with its most liquid assets, also followed a similar trend. It remained above 3 from March 2020 to June 2022 but dropped to 0.39 by March 31, 2024, signaling a decrease in immediate liquidity.
The cash ratio, representing the company's ability to settle its current liabilities with cash and cash equivalents, echoed the decline seen in the quick ratio. The ratio decreased from over 3 in March 2021 to 0.78 by December 31, 2024, suggesting a reduced capacity to meet immediate obligations solely with cash resources.
Overall, the downward trend in these liquidity ratios from mid-2022 to the end of 2024 may indicate potential liquidity challenges for Cogent Communications Group Inc in meeting its short-term financial commitments. This trend would require further investigation to understand the underlying reasons and to assess the company's overall financial health.
Additional liquidity measure
| 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 conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 48.25 | 60.67 | 80.02 | 83.40 | 87.75 | 60.77 | 48.76 | 14.54 | 5.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Cogent Communications Group Inc's cash conversion cycle has exhibited fluctuations over the periods provided in the data. At the beginning of the analyzed period, the company had a cash conversion cycle of 0.00 days, indicating an efficient management of working capital. However, from September 2021 to March 2023, the cash conversion cycle gradually increased, peaking at 87.75 days in September 2022. This increase suggests that the company took longer to convert its investments in inventory and other resources into cash.
Subsequently, there was a decline in the cash conversion cycle from September 2022 to September 2023, reaching a low of 48.25 days. This improvement may indicate enhanced efficiency in managing working capital and converting resources into cash more swiftly. By the end of the analyzed period, the cash conversion cycle returned to 0.00 days, reflecting a potential adjustment in the company's operational practices.
Overall, fluctuations in the cash conversion cycle of Cogent Communications Group Inc highlight the importance of monitoring working capital management practices to ensure optimal efficiency in converting resources into cash.