Cogent Communications Group Inc (CCOI)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,173,100 | 3,211,620 | 1,010,180 | 984,557 | 1,000,480 |
| Operating ROA | -7.53% | -4.03% | 11.28% | 12.11% | 10.69% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-239,035K ÷ $3,173,100K
= -7.53%
The operating return on assets (operating ROA) of Cogent Communications Group Inc has shown fluctuations over the years based on the provided data.
From December 31, 2020, to December 31, 2021, the operating ROA improved from 10.69% to 12.11%, indicating an increase in the company's operating efficiency in generating profits from its assets. However, from December 31, 2021, to December 31, 2022, there was a slight decline in the operating ROA to 11.28%.
The operating ROA took a significant downturn from December 31, 2022, to December 31, 2023, dropping to -4.03%, indicating that the company faced challenges in utilizing its assets effectively to generate operating profits. This trend worsened further by December 31, 2024, with the operating ROA plunging to -7.53%, reflecting a significant decline in operating profitability relative to its asset base.
Overall, the decreasing trend in the operating ROA of Cogent Communications Group Inc in the latter years suggests a potential concern regarding the company's operational efficiency and the effectiveness of asset utilization in generating profits.
Peer comparison
Dec 31, 2024