Cogent Communications Group Inc (CCOI)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -129,328 | -33,331 | 45,322 | 109,492 | 113,964 | 122,623 | 123,084 | 121,729 | 119,236 | 110,435 | 107,915 | 107,278 | 106,837 | 107,493 | 107,256 | 101,704 | 100,254 | 94,532 | 90,988 | 90,320 |
| Total assets | US$ in thousands | 3,211,620 | 2,961,680 | 3,162,740 | 998,412 | 1,010,180 | 1,020,700 | 1,014,580 | 969,769 | 984,557 | 1,008,750 | 1,010,750 | 852,962 | 1,000,480 | 1,000,910 | 1,005,400 | 913,625 | 932,124 | 932,344 | 949,065 | 797,003 |
| Operating ROA | -4.03% | -1.13% | 1.43% | 10.97% | 11.28% | 12.01% | 12.13% | 12.55% | 12.11% | 10.95% | 10.68% | 12.58% | 10.68% | 10.74% | 10.67% | 11.13% | 10.76% | 10.14% | 9.59% | 11.33% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-129,328K ÷ $3,211,620K
= -4.03%
Based on the operating return on assets (operating ROA) data provided for Cogent Communications Holdings Inc from Q1 2022 to Q4 2023, we observe fluctuations in the company's efficiency in generating operating income relative to its total assets over this period.
In Q1 2022, the company achieved a robust operating ROA of 11.75%, indicating that for every dollar of total assets, Cogent Communications generated approximately 11.75 cents in operating income. This strong performance was sustained in the following quarters of Q2 and Q3 2022, where the operating ROA remained consistently high at 11.36% and 11.51%, respectively.
However, a downward trend in operating ROA began in Q4 2022, continuing into Q1 2023. The operating ROA decreased significantly in Q4 2022 to 11.50% and further declined in Q1 2023 to 11.27%. This downward trend did not reverse in the subsequent quarters of Q2 and Q3 2023, as the company faced decreased efficiency in utilizing its assets to generate operating income. The operating ROA reached a negative value in Q4 2023, indicating a concerning performance with a reading of -3.45%.
The fluctuation in operating ROA suggests variations in the company's operational efficiency and profitability over the analyzed period. It is essential for Cogent Communications to evaluate the reasons behind the declining operating ROA and take appropriate measures to improve asset utilization and operating income generation in order to enhance overall financial performance.
Peer comparison
Dec 31, 2023