Cogent Communications Group Inc (CCOI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -129,329 | 113,959 | 119,233 | 106,922 | 100,257 |
| Total assets | US$ in thousands | 3,211,620 | 1,010,180 | 984,557 | 1,000,480 | 932,124 |
| Operating ROA | -4.03% | 11.28% | 12.11% | 10.69% | 10.76% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-129,329K ÷ $3,211,620K
= -4.03%
Operating return on assets (operating ROA) measures the efficiency of Cogent Communications Holdings Inc in generating operating profits from its assets. A higher operating ROA indicates that the company is more effective in utilizing its assets to generate profits. Looking at the trend from 2019 to 2023, Cogent Communications had a consistent operating ROA between 10.64% and 11.50% before a significant decline to -3.45% in 2023. This sharp decrease suggests that the company's operating profits decreased substantially relative to its assets in 2023 compared to the previous years. Further investigation into the causes of this decline is warranted to determine the factors impacting the company's operating performance and asset utilization efficiency in 2023.
Peer comparison
Dec 31, 2023