Gogo Inc (GOGO)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.44 | 1.39 | 1.47 | 1.65 | 1.78 | 1.92 | 2.11 | 2.34 | 2.39 | 5.14 | 6.57 | 6.97 | 10.00 | 6.39 | 1.66 | 1.85 | 4.99 | 1.38 | 1.28 | 1.31 | |
| DOH | days | 253.62 | 263.38 | 248.12 | 221.25 | 205.07 | 190.12 | 173.12 | 156.23 | 152.73 | 71.00 | 55.57 | 52.40 | 36.52 | 57.14 | 219.51 | 197.09 | 73.20 | 264.43 | 285.65 | 277.88 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.44
= 253.62
Gogo Inc's days of inventory on hand (DOH) have shown a fluctuating trend over the past eight quarters. The DOH increased gradually from Q1 2022, reaching a peak of 173.47 days in Q4 2023. This indicates that, on average, Gogo Inc held inventory for approximately 173 days. Such a high number suggests a slower inventory turnover rate compared to previous quarters.
The trend suggests that Gogo Inc may be experiencing challenges in managing its inventory efficiently, potentially leading to increased storage costs and the risk of inventory obsolescence. It is essential for the company to address this issue to optimize its working capital and improve its overall financial performance. A thorough analysis of the reasons behind the extended DOH is necessary for the company to implement effective inventory management strategies and enhance operational efficiency.
Peer comparison
Dec 31, 2023