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Cogent Communications Holdings (Cogent Communications Holdings) Beneish M-Score : 5.18 (As of Jul. 23, 2024)


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What is Cogent Communications Holdings Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 5.18 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Cogent Communications Holdings's Beneish M-Score or its related term are showing as below:

CCOI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.36   Med: -3.12   Max: 6.73
Current: 5.18

During the past 13 years, the highest Beneish M-Score of Cogent Communications Holdings was 6.73. The lowest was -3.36. And the median was -3.12.


Cogent Communications Holdings Beneish M-Score Historical Data

The historical data trend for Cogent Communications Holdings's Beneish M-Score 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 Beneish M-Score Chart

Cogent Communications Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.18 -2.91 -3.15 -3.05 6.73

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
Beneish M-Score 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 -3.07 6.42 5.05 6.73 5.18

Competitive Comparison of Cogent Communications Holdings's Beneish M-Score

For the Telecom Services subindustry, Cogent Communications Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Cogent Communications Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Cogent Communications Holdings's Beneish M-Score falls into.



Cogent Communications Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Cogent Communications Holdings for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 2.9217+0.528 * 1.6379+0.404 * 13.3418+0.892 * 1.7442+0.115 * 0.9987
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0508+4.679 * -0.056601-0.327 * 0.464
=5.18

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $230 Mil.
Revenue was 266.168 + 272.1 + 275.429 + 239.806 = $1,054 Mil.
Gross Profit was 97.235 + 97.602 + 101.835 + 102.304 = $399 Mil.
Total Current Assets was $473 Mil.
Total Assets was $3,145 Mil.
Property, Plant and Equipment(Net PPE) was $1,909 Mil.
Depreciation, Depletion and Amortization(DDA) was $278 Mil.
Selling, General, & Admin. Expense(SGA) was $307 Mil.
Total Current Liabilities was $421 Mil.
Long-Term Debt & Capital Lease Obligation was $1,720 Mil.
Net Income was -65.307 + 200.153 + -56.723 + 1123.863 = $1,202 Mil.
Non Operating Income was -20.659 + 254.769 + -8.508 + 1153.675 = $1,379 Mil.
Cash Flow from Operations was 19.219 + -48.698 + -52.432 + 82.654 = $1 Mil.
Total Receivables was $45 Mil.
Revenue was 153.588 + 151.979 + 150 + 148.45 = $604 Mil.
Gross Profit was 94.95 + 95.008 + 92.78 + 91.936 = $375 Mil.
Total Current Assets was $329 Mil.
Total Assets was $998 Mil.
Property, Plant and Equipment(Net PPE) was $651 Mil.
Depreciation, Depletion and Amortization(DDA) was $95 Mil.
Selling, General, & Admin. Expense(SGA) was $167 Mil.
Total Current Liabilities was $127 Mil.
Long-Term Debt & Capital Lease Obligation was $1,337 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(230.189 / 1053.503) / (45.172 / 604.017)
=0.218499 / 0.074786
=2.9217

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(374.674 / 604.017) / (398.976 / 1053.503)
=0.620304 / 0.378714
=1.6379

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (473.161 + 1909.361) / 3145.412) / (1 - (328.797 + 651.465) / 998.412)
=0.242541 / 0.018179
=13.3418

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=1053.503 / 604.017
=1.7442

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(94.694 / (94.694 + 651.465)) / (277.94 / (277.94 + 1909.361))
=0.126909 / 0.12707
=0.9987

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(306.934 / 1053.503) / (167.47 / 604.017)
=0.291346 / 0.27726
=1.0508

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1720.3 + 420.609) / 3145.412) / ((1337.11 + 127.422) / 998.412)
=0.680645 / 1.466861
=0.464

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1201.986 - 1379.277 - 0.743) / 3145.412
=-0.056601

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Cogent Communications Holdings has a M-score of 5.18 signals that the company is likely to be a manipulator.


Cogent Communications Holdings Beneish M-Score Related Terms

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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