Cogent Communications Group Inc (CCOI)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 609,556 | -518,632 | -373,098 | -293,166 | -203,679 |
| Debt-to-capital ratio | 0.00 | — | — | — | 1.85 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $609,556K)
= 0.00
The debt-to-capital ratio of Cogent Communications Holdings Inc has shown a decreasing trend from 2019 to 2023. In 2019, the ratio was 1.27, indicating that the company's debt represented 127% of its total capital. It increased in 2020 to 1.37 but began a decline thereafter. By 2023, the ratio had decreased significantly to 0.70, suggesting that the company's debt levels relative to its total capital had reduced substantially.
A high debt-to-capital ratio can indicate higher financial risk and leverage, which may concern investors and creditors. Conversely, a lower ratio signifies a healthier capital structure with a lower reliance on debt financing. Therefore, the decreasing trend in Cogent Communications Holdings Inc's debt-to-capital ratio from 2019 to 2023 indicates an improvement in its debt management and capital structure over the years.
Peer comparison
Dec 31, 2023