Cogent Communications Group Inc (CCOI)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,173,100 | 3,204,090 | 3,344,170 | 3,145,410 | 3,473,840 | 2,961,680 | 3,162,740 | 998,412 | 1,010,180 | 1,020,700 | 1,014,580 | 969,769 | 984,557 | 1,008,750 | 1,010,750 | 852,962 | 1,000,480 | 1,000,910 | 1,005,400 | 913,625 |
| Total stockholders’ equity | US$ in thousands | 222,848 | 323,553 | 415,523 | 500,644 | 609,556 | 442,128 | 539,200 | -548,547 | -518,632 | -491,765 | -440,181 | -408,606 | -373,098 | -356,767 | -336,141 | -307,559 | -293,166 | -260,691 | -235,550 | -222,225 |
| Financial leverage ratio | 14.24 | 9.90 | 8.05 | 6.28 | 5.70 | 6.70 | 5.87 | — | — | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,173,100K ÷ $222,848K
= 14.24
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. A higher financial leverage ratio indicates a greater reliance on debt capital, which can magnify both returns and risks for shareholders.
For Cogent Communications Group Inc, the financial leverage ratio has been consistently increasing over the analyzed period, starting at 5.87 as of June 30, 2023, and reaching 14.24 by December 31, 2024. This upward trend indicates that the company has been taking on more debt relative to its equity over time.
The significant increase in the financial leverage ratio over the period could signify that Cogent Communications Group Inc is potentially taking on more financial risk by increasing its debt levels. While debt can be a cost-effective way to finance growth, high levels of leverage also increase the company's exposure to interest rate fluctuations and overall financial instability.
Overall, investors and stakeholders should closely monitor Cogent Communications Group Inc's financial leverage ratio to assess the company's ability to manage its debt obligations and financial risks effectively.
Peer comparison
Dec 31, 2024