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Cogent Communications Holdings (Cogent Communications Holdings) Gross Margin % : 36.53% (As of Mar. 2024)


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What is Cogent Communications Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cogent Communications Holdings's Gross Profit for the three months ended in Mar. 2024 was $97 Mil. Cogent Communications Holdings's Revenue for the three months ended in Mar. 2024 was $266 Mil. Therefore, Cogent Communications Holdings's Gross Margin % for the quarter that ended in Mar. 2024 was 36.53%.

Warning Sign:

Cogent Communications Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -4.1%.


The historical rank and industry rank for Cogent Communications Holdings's Gross Margin % or its related term are showing as below:

CCOI' s Gross Margin % Range Over the Past 10 Years
Min: 37.87   Med: 57.86   Max: 61.95
Current: 37.87


During the past 13 years, the highest Gross Margin % of Cogent Communications Holdings was 61.95%. The lowest was 37.87%. And the median was 57.86%.

CCOI's Gross Margin % is ranked worse than
62.96% of 351 companies
in the Telecommunication Services industry
Industry Median: 49.16 vs CCOI: 37.87

Cogent Communications Holdings had a gross margin of 36.53% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Cogent Communications Holdings was -4.10% per year.


Cogent Communications Holdings Gross Margin % Historical Data

The historical data trend for Cogent Communications Holdings's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cogent Communications Holdings Gross Margin % Chart

Cogent Communications Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 59.76 61.42 61.62 61.95 42.16

Cogent Communications Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 61.82 42.66 36.97 35.87 36.53

Competitive Comparison of Cogent Communications Holdings's Gross Margin %

For the Telecom Services subindustry, Cogent Communications Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cogent Communications Holdings's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Cogent Communications Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Cogent Communications Holdings's Gross Margin % falls into.



Cogent Communications Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Cogent Communications Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=396.7 / 940.922
=(Revenue - Cost of Goods Sold) / Revenue
=(940.922 - 544.232) / 940.922
=42.16 %

Cogent Communications Holdings's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=97.2 / 266.168
=(Revenue - Cost of Goods Sold) / Revenue
=(266.168 - 168.933) / 266.168
=36.53 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Cogent Communications Holdings  (NAS:CCOI) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Cogent Communications Holdings had a gross margin of 36.53% for the quarter that ended in Mar. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Cogent Communications Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Cogent Communications Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Cogent Communications Holdings (Cogent Communications Holdings) Business Description

Traded in Other Exchanges
Address
2450 N Street North West, Washington, DC, USA, 20037
Cogent carries over one fifth of the world's internet traffic over its network and is a broadband provider for businesses. Cogent's corporate customers are in high-rise office buildings; the firm provides them with two types of connections: dedicated internet access, which connects them to the internet, and virtual private networking, which offers an internal network for employees in different locations. Cogent's corporate customers are exclusively in North America and account for over half of the firm's revenue. Cogent's netcentric customers include internet service providers and content providers, to which Cogent provides internet transit. They hand traffic to Cogent in data centers and rely on Cogent to deliver it. About half of netcentric revenue is from outside the U.S.
Executives
John B. Chang officer: VP & CHIEF LEGAL OFFICER 2450 N ST NW, 4TH FLOOR, WASHINGTON DC 20037
Dave Schaeffer director, 10 percent owner, officer: Chairman, President & CEO C/O COGENT COMMUNICATIONS HOLDINGS, INC., 2450 N ST NW, 4TH FLOOR, WASHINGTON DC 20037
Henry W Kilmer officer: VP of IP Engineering C/O COGENT COMMUNICATIONS HOLDINGS, INC., 2450 N ST NW, 4TH FLOOR, WASHINGTON DC 20037
James Bubeck officer: Chief Revenue Officer 2450 N STREET NW, WASHINGTON DC 20037
Thaddeus Gerard Weed officer: VP, Controller COGENT COMMUNICATIONS HOLDINGS, INC., 2450 N ST NW, 4TH FLOOR, WASHINGTON DC 20037
Lewis H Ferguson director 8717 BURDETTE ROAD, BETHESDA MD 20817
Sheryl Lynn Kennedy director C/O COGENT COMMUNICATIONS HOLDINGS, INC., 2450 N STREET, N.W., WASHINGTON DC 20037
Blake Bath director 1010 WISCONSIN AVENUE, SUITE 600, WASHINGTON DC 20007
Marc Montagner other: director nominee C/O ENDURANCE INT'L GROUP HOLDINGS, INC., 10 CORPORATE DRIVE, SUITE 300, BURLINGTON MA 01803
David Allen Kapp officer: VP & CHIEF TECHNICAL OFFICER C/O COGENT COMMUNICATIONS HOLDINGS, INC., 2450 N STREET, N.W., WASHINGTON DC 20037
Jeffrey S Danielson officer: VP Infrastructure C/O COGENT COMMUNICATIONS HOLDINGS, INC., 2450 N STREET, N.W., WASHINGTON DC 20037
Steven D Brooks director C/O COGENT COMMUNICATIONS HOLDINGS, INC., 2450 N ST NW, 4TH FLOOR, WASHINGTON DC 20037
Greg W O'connor officer: VP, CHIEF OPERATING OFFICER C/O COGENT COMMUNICATIONS HOLDINGS, INC., 2450 N STREET, N.W., WASHINGTON DC 20037
Eve N Howard director C/O COGENT COMMUNICATIONS HOLDINGS, INC., 2450 N STREET, N.W., WASHINGTON DC 20037
Sa Paul De director C/O COGENT COMMUNICATIONS HOLDINGS, INC., 2450 N STREET, N.W., WASHINGTON DC 20037