Gogo Inc (GOGO)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.42 | 1.79 | 2.10 | 2.02 | 2.18 | 2.19 | 2.38 | 2.60 | 2.75 | 2.71 | 2.71 | 2.98 | 3.01 | 3.38 | 3.51 | 4.47 | 7.19 | 8.53 | 2.94 | 3.50 | |
| DOH | days | 257.19 | 204.40 | 173.79 | 180.41 | 167.57 | 166.66 | 153.10 | 140.17 | 132.93 | 134.51 | 134.74 | 122.41 | 121.35 | 107.89 | 104.05 | 81.64 | 50.78 | 42.78 | 124.29 | 104.19 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.42
= 257.19
The days of inventory on hand (DOH) for Gogo Inc has fluctuated over the periods provided. Beginning at 104.19 days on March 31, 2020, the DOH increased to 257.19 days by December 31, 2024. This indicates a significant increase in the number of days it takes for Gogo Inc to sell its inventory over this period.
Such an increase in the DOH may signify potential issues related to inventory management, such as overstocking or slow-moving inventory. This can tie up working capital and lead to increased storage and holding costs.
Furthermore, a rising DOH can also be a sign of decreasing efficiency in sales and operations, as it takes longer for the company to convert its inventory into sales revenue. It is important for Gogo Inc to assess and possibly streamline its inventory management practices to optimize working capital and improve operational performance.
Peer comparison
Dec 31, 2024