Cogent Communications Group Inc (CCOI)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | 444,088 |
| Total assets | US$ in thousands | 3,211,620 | 1,010,180 | 984,557 | 1,000,480 | 932,124 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.48 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $3,211,620K
= 0.00
The debt-to-assets ratio of Cogent Communications Holdings Inc has shown a declining trend over the past five years, from 1.02 in 2019 to 0.45 in 2023. This indicates that the company has been able to reduce its reliance on debt in relation to its assets over this period. A lower debt-to-assets ratio suggests a stronger financial position and lower risk of financial distress, as the company has a higher proportion of assets financed by equity rather than debt. The decreasing trend could signal improved financial management, operational efficiency, or an increase in asset base relative to debt levels. It also indicates a potentially lower interest burden, which can positively impact the company's profitability and cash flow. Overall, the decreasing debt-to-assets ratio of Cogent Communications Holdings Inc is a positive indicator of its financial health and stability.
Peer comparison
Dec 31, 2023