Cogent Communications Group Inc (CCOI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -204,074 | 1,273,440 | 5,146 | 48,185 | 6,216 |
| Total assets | US$ in thousands | 3,173,100 | 3,211,620 | 1,010,180 | 984,557 | 1,000,480 |
| ROA | -6.43% | 39.65% | 0.51% | 4.89% | 0.62% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-204,074K ÷ $3,173,100K
= -6.43%
Based on the provided data, Cogent Communications Group Inc's return on assets (ROA) has exhibited significant fluctuations over the years. The ROA for the fiscal year ending December 31, 2020, was relatively low at 0.62%, indicating that the company generated a modest return relative to its assets during that period.
However, there was a notable improvement in the ROA for the following year, as of December 31, 2021, reaching 4.89%. This substantial increase suggests that Cogent Communications Group Inc was able to enhance its efficiency in generating profits using its assets more effectively compared to the previous year.
The ROA then experienced a decline as of December 31, 2022, dropping to 0.51%, indicating a decrease in the company's ability to generate profits relative to its asset base.
A significant surge in the ROA was observed for the fiscal year ending December 31, 2023, reaching an impressive 39.65%. This substantial increase indicates a remarkable improvement in the company's profitability relative to its asset base, potentially driven by increased revenue generation or more efficient asset utilization strategies.
However, there was a sharp downturn in the ROA for the year ending December 31, 2024, dropping to -6.43%. A negative ROA suggests that the company experienced a loss for that period relative to its assets, reflecting potential challenges or inefficiencies in its operations.
In conclusion, the analysis of Cogent Communications Group Inc's ROA reveals significant fluctuations over the years, indicating varying levels of profitability and efficiency in asset utilization. It is essential for the company to closely monitor its ROA trends to assess and improve its operational performance and financial health.
Peer comparison
Dec 31, 2024