Cogent Communications Group Inc (CCOI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 15,336 | 75,092 | 223,783 | 319,609 | 371,301 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 82,465 | 373,324 | 120,284 | 81,010 | 94,443 |
| Quick ratio | 0.19 | 0.20 | 1.86 | 3.95 | 3.93 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($15,336K
+ $—K
+ $—K)
÷ $82,465K
= 0.19
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, indicating that the company has enough liquid assets to cover its short-term liabilities.
Based on the data provided:
- As of December 31, 2020, Cogent Communications Group Inc had a quick ratio of 3.93, indicating a strong ability to meet its short-term obligations with its liquid assets.
- The quick ratio remained stable at 3.95 as of December 31, 2021, further reinforcing the company's robust liquidity position.
- However, there was a notable decline in the quick ratio to 1.86 as of December 31, 2022, suggesting a potential decrease in the company's ability to cover its short-term liabilities.
- The quick ratio dropped significantly to 0.20 as of December 31, 2023, signaling a concerning liquidity position with insufficient liquid assets to meet short-term obligations.
- By December 31, 2024, the quick ratio decreased slightly to 0.19, implying persistent challenges in maintaining adequate liquidity to satisfy short-term liabilities.
In summary, Cogent Communications Group Inc exhibited a solid liquidity position in the initial years, as reflected by quick ratios above 1. However, a substantial decline in the quick ratio over the subsequent years raises concerns about the company's ability to meet its short-term obligations using its current liquid assets. Further analysis of the company's liquidity management practices and financial performance is recommended to address these declining trends.
Peer comparison
Dec 31, 2024