Cogent Communications Group Inc (CCOI)
Debt-to-equity 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-equity ratio | 0.00 | — | — | — | — |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $609,556K
= 0.00
The debt-to-equity ratio of Cogent Communications Holdings Inc as of December 31, 2023, is 2.35. This indicates that the company relies more on debt financing rather than equity financing to support its operations and growth. A ratio of 2.35 suggests that for every dollar of equity, the company has $2.35 of debt.
Given that the ratio is relatively high, it implies that Cogent Communications has a significant amount of financial leverage, which can magnify returns on equity when business is good but also increase financial risk during economic downturns or periods of financial difficulty.
It is important for stakeholders to monitor this ratio over time to ensure that the company's debt levels do not become unsustainable and potentially jeopardize its financial stability and long-term viability. Comparing this ratio to industry benchmarks and historical trends may provide further insights into the company's capital structure and financial health.
Peer comparison
Dec 31, 2023