Cogent Communications Group Inc (CCOI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,273,440 | 5,146 | 48,185 | 6,216 | 37,520 |
| Total assets | US$ in thousands | 3,211,620 | 1,010,180 | 984,557 | 1,000,480 | 932,124 |
| ROA | 39.65% | 0.51% | 4.89% | 0.62% | 4.03% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,273,440K ÷ $3,211,620K
= 39.65%
The return on assets (ROA) of Cogent Communications Holdings Inc has shown significant fluctuations over the past five years. In 2023, the ROA sharply increased to 39.65%, which indicates a substantial improvement in the company's ability to generate profits relative to its total assets. This surge in ROA reflects a more efficient utilization of assets to drive profitability. In contrast, the ROA was relatively low in 2022 and 2020, at 0.51% and 0.62% respectively, suggesting that the company may have faced challenges in efficiently leveraging its assets to generate earnings during those years.
The performance in 2021 and 2019 showed higher but more moderate ROA levels of 4.89% and 4.03% respectively, indicating that the company was able to generate relatively stronger returns on its assets in those years compared to 2020 and 2022. Overall, the recent spike in ROA in 2023 signifies a notable improvement in the company's asset utilization efficiency and profitability compared to the previous years, signaling positive momentum for Cogent Communications Holdings Inc.
Peer comparison
Dec 31, 2023