Cogent Communications Group Inc (CCOI)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -239,035 | -129,329 | 113,959 | 119,233 | 106,922 |
| Revenue | US$ in thousands | 783,813 | 940,922 | 599,604 | 589,797 | 568,103 |
| Operating profit margin | -30.50% | -13.74% | 19.01% | 20.22% | 18.82% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-239,035K ÷ $783,813K
= -30.50%
Cogent Communications Group Inc's operating profit margin has displayed fluctuating trends over the years. The margin improved from 18.82% as of December 31, 2020, to 20.22% by December 31, 2021, indicating increased efficiency in generating operating profits relative to revenue. However, the margin slightly dropped to 19.01% by December 31, 2022.
The significant decline in the operating profit margin to -13.74% as of December 31, 2023, followed by a further sharp decrease to -30.50% by December 31, 2024, raises concerns about the company's ability to control its operating expenses compared to its revenue. Such negative margins suggest that the company may be operating at a loss on an operating basis during those periods.
It is crucial for Cogent Communications Group Inc to evaluate and address the factors contributing to the declining trend in its operating profit margin to ensure sustainable profitability and operational efficiency in the future.
Peer comparison
Dec 31, 2024