Cogent Communications Group Inc (CCOI)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 152,234 | 396,690 | 371,450 | 363,460 | 348,946 |
| Revenue | US$ in thousands | 783,813 | 940,922 | 599,604 | 589,797 | 568,103 |
| Gross profit margin | 19.42% | 42.16% | 61.95% | 61.62% | 61.42% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $152,234K ÷ $783,813K
= 19.42%
The gross profit margin of Cogent Communications Group Inc has exhibited a generally positive trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at 61.42% in December 2020, the gross profit margin slightly increased to 61.62% in December 2021 and further improved to 61.95% in December 2022, indicating the company's ability to effectively control its production costs relative to its revenues.
However, a notable deviation occurred in December 2023, where the gross profit margin dropped significantly to 42.16%, suggesting a potential issue with increased production costs or pricing pressures that impacted profitability. This decline continued into December 2024, with the gross profit margin falling further to 19.42%, signaling a more substantial challenge for the company in maintaining its profitability levels.
Overall, while the initial years showed a positive trend in gross profit margin, the significant decline in the later years raises concerns about Cogent Communications Group Inc's ability to effectively manage its cost structure and maintain profitability levels in the face of changing market conditions or internal challenges.
Peer comparison
Dec 31, 2024