Cogent Communications Group Inc (CCOI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.42% | 42.16% | 61.95% | 61.62% | 61.42% |
| Operating profit margin | -30.50% | -13.74% | 19.01% | 20.22% | 18.82% |
| Pretax margin | -33.13% | 129.60% | 4.40% | 12.11% | 1.82% |
| Net profit margin | -26.04% | 135.34% | 0.86% | 8.17% | 1.09% |
Cogent Communications Group Inc's profitability ratios have shown fluctuations over the years. The gross profit margin has ranged from 61.42% in 2020 to 19.42% in 2024, indicating a significant decrease in profitability over this period. Similarly, the operating profit margin has varied from 18.82% in 2020 to -30.50% in 2024, with a notable decline in profitability in the later years.
The pretax margin also reflects fluctuations, with a significant increase in 2023 to 129.60%, followed by a sharp decrease to -33.13% in 2024. This suggests that the company experienced a period of high profitability followed by a substantial loss in the most recent year.
In terms of net profit margin, there was a notable increase in profitability from 1.09% in 2020 to 135.34% in 2023, but this trend reversed in 2024, with a negative net profit margin of -26.04%.
Overall, Cogent Communications Group Inc's profitability ratios demonstrate a mixed performance, with significant fluctuations in margins over the years, indicating challenges in maintaining consistent profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -7.53% | -4.03% | 11.28% | 12.11% | 10.69% |
| Return on assets (ROA) | -6.43% | 39.65% | 0.51% | 4.89% | 0.62% |
| Return on total capital | -97.07% | 217.58% | — | — | — |
| Return on equity (ROE) | -91.58% | 208.91% | — | — | — |
Based on the provided data for Cogent Communications Group Inc, let's analyze the profitability ratios:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown some fluctuations over the years. It increased from 10.69% in 2020 to 12.11% in 2021, but decreased to 11.28% in 2022. However, there was a significant decline in 2023 and 2024 to -4.03% and -7.53% respectively. This indicates that the company's operating profit generated from its assets decreased in those years.
2. Return on Assets (ROA):
- The ROA also exhibited fluctuations throughout the years. It was 0.62% in 2020, improved to 4.89% in 2021, but dropped to 0.51% in 2022. There was a substantial increase in ROA to 39.65% in 2023, followed by a decline to -6.43% in 2024. The negative ROA in 2024 indicates that the company's net income was insufficient to cover its total assets.
3. Return on Total Capital:
- The data shows that information for the Return on Total Capital ratio was not available for the years 2020 and 2021. In 2023, there was a significant return of 217.58%, indicating that the company generated a high return in relation to its total capital. However, in 2024, the ratio sharply declined to -97.07%, signaling a substantial loss compared to the total capital employed.
4. Return on Equity (ROE):
- The ROE data was also not available for the years 2020 and 2021. In 2023, the ROE was notably high at 208.91%, reflecting a strong return to the equity holders. However, in 2024, the ROE declined significantly to -91.58%, indicating a negative return to the equity investors.
Overall, the analysis of these profitability ratios indicates that Cogent Communications Group Inc experienced fluctuations in its profitability performance over the years, with some years showing strong returns while others indicating declines and negative returns. Investors and stakeholders should consider the reasons behind these fluctuations to assess the company's financial health and performance accurately.