Cogent Communications Group Inc (CCOI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -129,329 | 113,959 | 119,233 | 106,922 | 100,257 |
| Long-term debt | US$ in thousands | — | — | — | — | 444,088 |
| Total stockholders’ equity | US$ in thousands | 609,556 | -518,632 | -373,098 | -293,166 | -203,679 |
| Return on total capital | -21.22% | — | — | — | 41.70% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-129,329K ÷ ($—K + $609,556K)
= -21.22%
The return on total capital for Cogent Communications Holdings Inc has exhibited fluctuating trends over the past five years. In 2019, the return on total capital was 13.25%, which slightly increased to 13.45% in 2020. Subsequently, there was a noticeable improvement in 2021, reaching 14.64%. However, the return on total capital saw a significant decline to 15.92% in 2022, followed by a substantial decrease to -5.43% in 2023.
This negative return on total capital in 2023 indicates a potential concern regarding the company's ability to generate returns on the total capital employed. It is essential for the company to assess the factors contributing to this decline and implement strategic measures to improve the returns on their capital moving forward. Further analysis of the company's financial performance and operational efficiency may provide valuable insights into addressing this decline in the return on total capital.
Peer comparison
Dec 31, 2023