Cogent Communications Group Inc (CCOI)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.49 | 0.48 | 0.48 | 0.47 | 0.79 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | 2.00 | 1.85 | 1.75 | 1.66 | 1.35 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | 5.27 | 6.70 | 5.87 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios of Cogent Communications Holdings Inc demonstrate varying levels of leverage and financial risk over the quarters presented. The trends observed in the data are as follows:
1. Debt-to-assets ratio:
- The debt-to-assets ratio decreased from 1.27 in Q1 2023 to 0.45 in Q4 2023, indicating a significant reduction in the proportion of assets financed by debt.
- Overall, there was a decreasing trend in the debt-to-assets ratio from Q1 2023 to Q4 2023, suggesting improved solvency and less reliance on debt to support assets.
2. Debt-to-capital ratio:
- The debt-to-capital ratio fluctuated over the quarters but generally exhibited a decreasing trend from Q1 2023 to Q4 2023.
- The ratio decreased from 1.77 in Q1 2023 to 0.70 in Q4 2023, indicating a lower proportion of capital funded by debt and potentially reduced financial risk.
3. Debt-to-equity ratio:
- The debt-to-equity ratio fluctuated significantly, with data available only for Q2 and Q3 in 2023.
- The ratio dropped from 3.23 in Q3 2023 to 2.37 in Q2 2023, which may suggest a lower reliance on equity to finance operations during this period.
4. Financial leverage ratio:
- The financial leverage ratio exhibited a decreasing trend from Q1 2023 to Q3 2023, indicating a reduction in overall financial risk and leverage.
- There is missing data for Q4 2022 to Q1 2022, limiting a comprehensive analysis of the trend in the financial leverage ratio.
In conclusion, Cogent Communications Holdings Inc's solvency ratios show improvements in leverage and financial risk management over the quarters presented, with decreasing debt ratios and financial leverage ratios contributing to enhanced solvency and stability. Continued monitoring of these ratios will be essential to assess the company's ongoing financial health and risk profile.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -1.21 | -0.36 | 0.52 | 1.51 | 1.69 | 2.07 | 2.21 | 2.16 | 2.05 | 1.83 | 1.75 | 1.70 | 1.71 | 1.74 | 1.75 | 1.72 | 1.75 | 1.70 | 1.71 | 1.73 |
Interest coverage ratio is a key financial metric used to evaluate a company's ability to meet its interest payment obligations. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher ratio indicates a stronger ability to cover interest payments.
Analyzing the interest coverage ratios of Cogent Communications Holdings Inc over the past eight quarters, we observe fluctuations in the company's ability to cover its interest expenses. In Q4 2023 and Q3 2023, the interest coverage ratios were negative at -1.42 and -1.10, respectively. This indicates that the company's EBIT was insufficient to cover its interest expenses during these periods, raising concerns about its financial health and ability to meet its debt obligations.
However, the interest coverage improved in the preceding quarters, with ratios of 0.97 in Q2 2023, 2.20 in Q1 2023, and 1.72 in Q4 2022. These positive ratios suggest that Cogent Communications Holdings Inc had sufficient earnings to cover its interest payments during these periods.
It is worth noting that the interest coverage ratios were relatively stable in the earlier quarters of 2022, ranging from 1.06 to 1.31. While these ratios indicate that the company was able to meet its interest obligations, they also suggest a relatively marginal coverage.
In conclusion, the fluctuating interest coverage ratios of Cogent Communications Holdings Inc raise concerns about its ability to consistently cover its interest payments. Investors and stakeholders should closely monitor future financial performance to assess the company's financial sustainability and debt repayment capacity.