Cogent Communications Group Inc (CCOI)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,219,480 | 26,376 | 71,420 | 10,312 | 52,674 |
| Revenue | US$ in thousands | 833,927 | 563,244 | 555,263 | 470,867 | 492,038 |
| Pretax margin | 146.23% | 4.68% | 12.86% | 2.19% | 10.71% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,219,480K ÷ $833,927K
= 146.23%
Cogent Communications Holdings Inc's pretax margin has shown significant fluctuations over the past five years. The pretax margin for 2023 witnessed a substantial increase to 129.60%, indicating a substantial improvement in profitability compared to the previous years. This surge in pretax margin suggests that the company has effectively managed its operating expenses and generated higher pre-tax income compared to its total revenue.
In contrast, 2020 saw a much lower pretax margin of 1.82%, reflecting lower profitability and potentially higher operating expenses relative to revenue during that period. The pretax margin for 2021 and 2019 was 12.11% and 9.64% respectively, showing moderate profitability levels in those respective years.
Overall, the significant increase in pretax margin for 2023 compared to the previous years indicates a commendable performance by Cogent Communications Holdings Inc in terms of controlling costs and enhancing overall operational efficiency. It will be important to monitor future financial statements to assess the sustainability of this improved pretax margin.
Peer comparison
Dec 31, 2023