Cogent Communications Group Inc (CCOI)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 249,346 | 181,978 | 188,163 | 260,227 | 328,833 | 394,096 | 385,041 | 374,673 | 371,449 | 367,232 | 365,734 | 365,497 | 363,456 | 361,738 | 358,239 | 353,644 | 348,953 | 344,183 | 338,089 | 331,367 |
| Revenue (ttm) | US$ in thousands | 1,036,104 | 1,055,912 | 1,074,139 | 1,053,502 | 940,922 | 820,802 | 695,373 | 604,017 | 599,604 | 594,833 | 592,760 | 592,189 | 589,791 | 586,484 | 580,859 | 573,970 | 568,108 | 564,499 | 559,139 | 552,938 |
| Gross profit margin | 24.07% | 17.23% | 17.52% | 24.70% | 34.95% | 48.01% | 55.37% | 62.03% | 61.95% | 61.74% | 61.70% | 61.72% | 61.62% | 61.68% | 61.67% | 61.61% | 61.42% | 60.97% | 60.47% | 59.93% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $249,346K ÷ $1,036,104K
= 24.07%
The gross profit margin of Cogent Communications Group Inc has demonstrated a generally upward trend over the years, reaching as high as 62.03% as of March 31, 2023. This indicates that the company is effectively managing its production costs and generating a healthy margin on its sales.
However, there was a significant decline in the gross profit margin to 55.37% as of June 30, 2023, followed by a more substantial decrease to 48.01% as of September 30, 2023. This may indicate challenges in cost control or pricing pressure during that period.
Subsequently, there was a steep drop in the gross profit margin to 34.95% by December 31, 2023, which continued to decline further to 24.70% as of March 31, 2024, and 17.52% by June 30, 2024. These declines suggest that the company may have encountered difficulties in maintaining profitability, potentially due to rising costs or a decrease in pricing power.
Although there was a slight improvement in the gross profit margin to 24.07% by December 31, 2024, the margin still remains relatively low compared to previous periods. This indicates that Cogent Communications Group Inc may need to address operational efficiencies or pricing strategies to enhance its profitability moving forward. Further analysis and monitoring of the gross profit margin will be essential to understand the company's performance and make informed strategic decisions.
Peer comparison
Dec 31, 2024