Cogent Communications Group Inc (CCOI)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -259,647 | 1,219,480 | 26,376 | 71,420 | 10,312 |
| Revenue | US$ in thousands | 783,813 | 940,922 | 599,604 | 589,797 | 568,103 |
| Pretax margin | -33.13% | 129.60% | 4.40% | 12.11% | 1.82% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-259,647K ÷ $783,813K
= -33.13%
The pretax margin is a key financial metric that indicates a company's efficiency in generating profits before taxes relative to its total revenue. Analyzing Cogent Communications Group Inc's pretax margin over the years reveals notable fluctuations in its profitability performance.
Starting with a relatively low pretax margin of 1.82% in December 31, 2020, the company experienced a significant improvement in profitability, as indicated by a higher pretax margin of 12.11% by December 31, 2021. This suggests that Cogent Communications Group Inc was able to streamline its operations and generate more profits compared to the previous year.
However, the pretax margin dipped to 4.40% by December 31, 2022, indicating a decline in profitability. This could be due to various factors such as increased operating expenses or changes in revenue streams.
The most striking observation comes in December 31, 2023, with an astonishing pretax margin of 129.60%. Such a remarkably high pretax margin could be an anomaly or may be influenced by extraordinary gains or one-time events that significantly boosted the company's profits during that period.
Lastly, by December 31, 2024, the company experienced a negative pretax margin of -33.13%, indicating that Cogent Communications Group Inc incurred losses before taxes, which raises concerns about its financial performance and operational efficiency during that period.
Overall, Cogent Communications Group Inc's pretax margin demonstrates varying levels of profitability over the analyzed period, highlighting the importance of monitoring and understanding the factors driving these fluctuations to assess the company's financial health and performance accurately.
Peer comparison
Dec 31, 2024