Cogent Communications Group Inc (CCOI)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -140,842 | 62,095 | 67,929 | 1,206,756 | 1,292,412 | 1,134,297 | 1,211,214 | 116,230 | 119,929 | 137,295 | 145,899 | 124,868 | 122,730 | 105,179 | 92,248 | 106,883 | 106,421 | 106,838 | 106,108 | 103,085 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | -63.20% | 19.19% | 16.35% | 241.04% | 212.03% | 256.55% | 224.63% | — | — | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-140,842K ÷ ($—K + $222,848K)
= -63.20%
Cogent Communications Group Inc's return on total capital has shown significant fluctuations over the past few quarters. In June 2023, the return on total capital was at a high level of 224.63%, indicating strong performance in generating profits relative to the total capital employed. This performance improved further in September 2023, reaching 256.55%.
However, there was a notable decrease in the return on total capital in December 2023, dropping to 212.03%. The trend continued with a further decline to 241.04% in March 2024. By June 2024, the return on total capital decreased significantly to 16.35%, signaling a substantial decrease in profitability.
In September 2024, there was a slight improvement in the return on total capital to 19.19%. However, by the end of December 2024, the return on total capital turned negative, standing at -63.20%, indicating the company's capital was being inefficiently utilized and may have suffered a loss.
Overall, the fluctuating trend in return on total capital suggests that Cogent Communications Group Inc's profitability and efficiency in utilizing its capital have been inconsistent and warrants further investigation to understand the underlying factors driving these changes.
Peer comparison
Dec 31, 2024