Cogent Communications Group Inc (CCOI)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,273,440 | 5,146 | 48,185 | 6,216 | 37,520 |
| Revenue | US$ in thousands | 833,927 | 563,244 | 555,263 | 470,867 | 492,038 |
| Net profit margin | 152.70% | 0.91% | 8.68% | 1.32% | 7.63% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $1,273,440K ÷ $833,927K
= 152.70%
The net profit margin of Cogent Communications Holdings Inc has displayed significant fluctuations over the past five years. In 2023, the company reported an exceptionally high net profit margin of 135.34%, a substantial increase compared to the preceding year's figure of 0.86%. This substantial surge indicates a remarkable improvement in the company's profitability during the most recent fiscal period.
The significant fluctuations observed in the net profit margin may be attributed to various factors such as changes in revenue, operating expenses, and non-operating income. It is noteworthy that the company experienced a notable recovery in profitability in 2023 after a relatively weaker performance in the prior years, evident from the low net profit margins of 1.09% in 2020 and 6.87% in 2019.
While a high net profit margin signifies that the company is efficiently converting revenue into profit, investors and analysts should further investigate the components underlying this metric to better understand the drivers of this significant improvement in profitability for Cogent Communications Holdings Inc in 2023.
Peer comparison
Dec 31, 2023