Cogent Communications Group Inc (CCOI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,211,620 | 1,010,180 | 984,557 | 1,000,480 | 932,124 |
| Total stockholders’ equity | US$ in thousands | 609,556 | -518,632 | -373,098 | -293,166 | -203,679 |
| Financial leverage ratio | 5.27 | — | — | — | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,211,620K ÷ $609,556K
= 5.27
The financial leverage ratio of Cogent Communications Holdings Inc was 5.27 as of December 31, 2023. The ratio indicates that the company relies heavily on debt financing in its capital structure. A high financial leverage ratio can amplify returns on equity when the business is performing well, but it also increases the risk of financial distress if the company struggles to meet its debt obligations. The lack of historical data for comparison limits the ability to assess the trend in the company's financial leverage over time. Monitoring changes in the financial leverage ratio can provide insights into the company's risk profile and capital structure decisions.
Peer comparison
Dec 31, 2023