Cogent Communications Group Inc (CCOI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -8.25% | 25.02% | 25.24% | 14.95% | 21.44% |
| Operating profit margin | -15.51% | 20.23% | 21.47% | 22.71% | 20.38% |
| Pretax margin | 146.23% | 4.68% | 12.86% | 2.19% | 10.71% |
| Net profit margin | 152.70% | 0.91% | 8.68% | 1.32% | 7.63% |
The profitability ratios of Cogent Communications Holdings Inc demonstrate fluctuations over the past five years. The gross profit margin has shown some volatility but was relatively stable, ranging between 59.76% and 61.95%. It dipped to 42.16% in 2023, which may indicate increased costs relative to revenue.
The operating profit margin, on the other hand, has displayed more variability, with significant changes from a high of 19.38% in 2022 to a negative figure of -11.78% in 2023. This suggests that the company's operational efficiency and cost management may have been inconsistent over the years.
The pretax margin saw substantial fluctuations, with a notable spike to 129.60% in 2023 after hovering at single-digit levels in the previous years. This surge could have been influenced by one-time gains or a shift in the company's tax strategy.
The net profit margin also experienced significant changes, ranging from as low as 0.86% in 2022 to a high of 135.34% in 2023. Such variations indicate that the company's bottom-line profitability was impacted by factors beyond just operational performance, such as tax effects or extraordinary gains.
Overall, while the gross profit margin remained relatively stable, the operating, pretax, and net profit margins of Cogent Communications Holdings Inc exhibit notable fluctuations over the analyzed period, suggesting a need for further investigation into the underlying drivers of these changes.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.03% | 11.28% | 12.11% | 10.69% | 10.76% |
| Return on assets (ROA) | 39.65% | 0.51% | 4.89% | 0.62% | 4.03% |
| Return on total capital | -21.22% | — | — | — | 41.70% |
| Return on equity (ROE) | 208.91% | — | — | — | — |
Cogent Communications Holdings Inc's profitability ratios show a mixed performance over the past five years. The operating return on assets (Operating ROA) has fluctuated, with a significant decrease from 11.50% in 2022 to -3.45% in 2023, indicating a decrease in operating efficiency or profitability. The Return on assets (ROA) has shown a notable improvement, with a substantial increase from 0.51% in 2022 to 39.65% in 2023, demonstrating improved profitability in generating earnings from assets.
The Return on total capital has also experienced fluctuations, with a decrease from 15.92% in 2022 to -5.43% in 2023, suggesting that the company may not be efficiently utilizing its total capital to generate returns. The Return on equity (ROE) appears to be missing data for the years 2020 to 2022; however, in 2023, there is a significant increase to 208.91%, indicating high profitability in generating returns for equity shareholders.
Overall, the company's profitability ratios show a mixed performance, with improvements in ROA and ROE but a decline in Operating ROA and Return on total capital in the most recent year. Further analysis and comparison with industry peers may provide better insights into Cogent Communications Holdings Inc's profitability trends and performance.