Cogent Communications Group Inc (CCOI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | 14.24 | 9.90 | 8.05 | 6.28 | 5.70 | 6.70 | 5.87 | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, we can analyze the solvency ratios for Cogent Communications Group Inc as follows:
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets that are financed by debt. Cogent Communications Group Inc has consistently maintained a debt-to-assets ratio of 0.00 since March 31, 2020, until December 31, 2024. A debt-to-assets ratio of 0.00 implies that the company's assets are entirely financed by equity, indicating a strong financial position in terms of asset coverage and risk exposure.
2. Debt-to-capital ratio: This ratio shows the proportion of the company's capital structure that is attributed to debt. The data shows that this ratio was not available prior to June 30, 2023, where it started at 0.00 and remained stable at that level until December 31, 2024. A debt-to-capital ratio of 0.00 indicates that there is no debt in the company's capital structure, which is a positive sign for its financial stability and ability to manage its debt obligations.
3. Debt-to-equity ratio: This ratio reflects the relationship between a company's debt and equity financing. Similar to the debt-to-capital ratio, the debt-to-equity ratio was not available before June 30, 2023, and has been consistently at 0.00 from that point onwards until December 31, 2024. A debt-to-equity ratio of 0.00 also suggests that the company relies solely on equity to finance its operations, highlighting a strong equity position and minimal risk associated with debt.
4. Financial leverage ratio: This ratio measures the extent to which a company is using debt financing to support its operations. Cogent Communications Group Inc had a financial leverage ratio that was not available before June 30, 2023. From that point, the ratio increased steadily from 5.87 on March 31, 2023, to 14.24 on December 31, 2024. The increasing trend indicates a rising level of financial leverage, suggesting that the company has been employing more debt to fund its operations over time.
In conclusion, based on the solvency ratios analysis, Cogent Communications Group Inc has demonstrated a strong financial position with no debt in its capital structure for the period analyzed. However, the increase in the financial leverage ratio over time indicates a growing reliance on debt financing, which may warrant closer monitoring to ensure sustainable financial health in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -1.19 | 0.54 | 0.58 | 10.39 | 11.58 | 11.50 | 13.79 | 1.59 | 1.34 | 1.57 | 1.69 | 1.44 | 1.85 | 1.68 | 1.51 | 1.71 | 1.70 | 1.68 | 1.68 | 1.68 |
Cogent Communications Group Inc's interest coverage ratio has shown fluctuations over the period indicated in the data provided. The interest coverage ratio measures the company's ability to meet its interest obligations using its operating income.
From March 31, 2020, to December 31, 2022, the interest coverage ratio ranged between 1.34 and 1.85, indicating the company's ability to cover its interest expenses with operating income was relatively stable during this period.
However, there was a significant spike in the interest coverage ratio in the second quarter of 2023, with the ratio increasing sharply to 13.79, indicating a substantial improvement in the company's ability to cover its interest expenses with operating income. This may have been due to a significant increase in operating income or a decrease in interest expenses during that period.
The interest coverage ratio then dropped significantly in the following quarters, reaching as low as 0.54 in September 30, 2024, and turning negative in December 31, 2024, at -1.19. These low ratios suggest that the company may be facing challenges in meeting its interest obligations with its current operating income levels.
Overall, the trend in Cogent Communications Group Inc's interest coverage ratio shows variability, with periods of stability interspersed with significant fluctuations. It is important for stakeholders to closely monitor this ratio to assess the company's financial health and ability to meet its debt obligations.