Cogent Communications Group Inc (CCOI)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -129,328 | -33,331 | 45,322 | 109,492 | 113,964 | 122,623 | 123,084 | 121,729 | 119,236 | 110,435 | 107,915 | 107,278 | 106,837 | 107,493 | 107,256 | 101,704 | 100,254 | 94,532 | 90,988 | 90,320 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 444,187 | 444,088 | 443,991 | 443,896 | 631,702 |
| Total stockholders’ equity | US$ in thousands | 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 | -203,679 | -190,501 | -176,590 | -164,231 |
| Return on total capital | -21.22% | -7.54% | 8.41% | — | — | — | — | — | — | — | — | — | — | — | — | 45.82% | 41.70% | 37.29% | 34.04% | 19.32% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-129,328K ÷ ($—K + $609,556K)
= -21.22%
Analyzing Cogent Communications Holdings Inc's return on total capital over the past eight quarters shows fluctuations in performance. In Q1 2023, the company achieved a robust return of 15.70%, but this declined to 2.71% in Q2 before turning negative in the subsequent quarters. The return on total capital was notably low in Q4 2023 at -5.43%, indicating potential inefficiencies in capital utilization or profitability challenges. In comparison, the company consistently delivered strong returns in the corresponding quarters of 2022, with values ranging from 15.21% to 15.92%. Overall, the recent trend suggests a decline in the company's ability to generate returns on its total capital, signaling a need for further analysis to identify the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2023