Cogent Communications Group Inc (CCOI)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -68,813 | 140,906 | 140,122 | 70,384 | 105,501 |
| Revenue | US$ in thousands | 833,927 | 563,244 | 555,263 | 470,867 | 492,038 |
| Gross profit margin | -8.25% | 25.02% | 25.24% | 14.95% | 21.44% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-68,813K ÷ $833,927K
= -8.25%
The gross profit margin of Cogent Communications Holdings Inc has displayed some variability over the past five years. The trend shows a decline from 59.76% in 2019 to 42.16% in 2023. This decrease could be an indication of increasing costs of goods sold and/or pricing pressures on the company's products and services. Additionally, the significant drop from 2022 to 2023 suggests a potential issue that may require further investigation.
Overall, a gross profit margin of around 42.16% in 2023 indicates that Cogent Communications Holdings Inc retains approximately 42.16% of revenue after accounting for the direct costs of producing goods and services. This could imply that the company may be facing challenges in efficiently managing its production costs and maintaining profitability. Further analysis of cost structures and pricing strategies would be necessary to understand the factors driving this trend in the gross profit margin.
Peer comparison
Dec 31, 2023