Cogent Communications Group Inc (CCOI)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -204,074 | 39,396 | 45,785 | 1,201,983 | 1,273,438 | 1,074,137 | 1,122,853 | 10,157 | 5,146 | 22,801 | 44,128 | 30,471 | 48,185 | 23,058 | 4,783 | 15,840 | 6,216 | 20,301 | 38,957 | 37,529 |
| Total stockholders’ equity | US$ in thousands | 222,848 | 323,553 | 415,523 | 500,644 | 609,556 | 442,128 | 539,200 | -548,547 | -518,632 | -491,765 | -440,181 | -408,606 | -373,098 | -356,767 | -336,141 | -307,559 | -293,166 | -260,691 | -235,550 | -222,225 |
| ROE | -91.58% | 12.18% | 11.02% | 240.09% | 208.91% | 242.95% | 208.24% | — | — | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-204,074K ÷ $222,848K
= -91.58%
The return on equity (ROE) of Cogent Communications Group Inc has shown significant fluctuations over the analyzed periods.
The ROE was not available for the periods up to the second quarter of 2023, indicating potential data unavailability or specific circumstances affecting the calculation. However, starting from the third quarter of 2023, the company's ROE began to exhibit extreme volatility.
In the third quarter of 2023, the ROE spiked to 242.95%, reflecting a substantial return relative to the shareholders' equity. This high ROE suggests that the company efficiently utilized its equity to generate profits during that period.
The fourth quarter of 2023 and the first quarter of 2024 maintained high ROEs at 208.91% and 240.09%, respectively. These elevated ROE figures continue to highlight the company's ability to generate significant profits from its equity base.
However, a notable drop in ROE occurred in the second quarter of 2024, where it plummeted to 11.02%. This sudden decline could indicate a decrease in profitability relative to the shareholders' equity, which may raise concerns about the company's performance during that period.
The trend continued in the third quarter of 2024, with ROE further decreasing to 12.18%, indicating a continued decrease in profitability relative to the shareholders' equity.
By the end of 2024, the ROE turned negative, reaching -91.58%. A negative ROE typically signifies that the company is generating losses rather than profits concerning its shareholders' equity, which raises significant red flags regarding its financial performance.
In conclusion, while Cogent Communications Group Inc experienced periods of exceptionally high profitability as indicated by the ROE peaks in 2023 and early 2024, the subsequent sharp decline and negative ROE towards the end of 2024 suggest a deterioration in the company's profitability and efficiency in utilizing its shareholders' equity.
Peer comparison
Dec 31, 2024