Cogent Communications Group Inc (CCOI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,173,100 | 3,211,620 | 1,010,180 | 984,557 | 1,000,480 |
| Total stockholders’ equity | US$ in thousands | 222,848 | 609,556 | -518,632 | -373,098 | -293,166 |
| Financial leverage ratio | 14.24 | 5.27 | — | — | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,173,100K ÷ $222,848K
= 14.24
The financial leverage ratio for Cogent Communications Group Inc shows a significant increase over the years, reaching 14.24 as of December 31, 2024. This indicates that the company is heavily reliant on debt financing to support its operations and investments. It suggests that a substantial portion of the company's assets are funded by debt rather than equity, which can lead to increased financial risk and potential difficulties in meeting its debt obligations. The trend of increasing financial leverage should be carefully monitored as it could impact the company's ability to navigate through economic challenges and capitalize on growth opportunities in the future.
Peer comparison
Dec 31, 2024