Gogo Inc (GOGO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 380,064 | 386,148 | 183,999 | 142,860 | 647,192 |
| Property, plant and equipment | US$ in thousands | 98,129 | 104,595 | 63,672 | 63,493 | 69,183 |
| Fixed asset turnover | 3.87 | 3.69 | 2.89 | 2.25 | 9.35 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $380,064K ÷ $98,129K
= 3.87
Fixed asset turnover measures how efficiently a company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover indicates that the company is effectively utilizing its fixed assets to generate sales.
Analyzing Gogo Inc's fixed asset turnover ratio from 2019 to 2023, we observe fluctuations in the ratio. In 2019, the fixed asset turnover was relatively low at 1.49, suggesting inefficient utilization of fixed assets to generate sales revenue. However, there was a significant improvement in 2021, with the ratio increasing to 5.27, indicating a more efficient use of fixed assets in generating sales.
Subsequently, in 2022 and 2023, the fixed asset turnover ratio remained above 3, which signifies that Gogo Inc continued to effectively utilize its fixed assets to generate revenue. The slight decrease in 2023 compared to 2022 may indicate a slight decrease in efficiency in generating sales from fixed assets, but the ratio of 4.05 still indicates a relatively efficient utilization.
Overall, Gogo Inc's fixed asset turnover ratios show a positive trend, demonstrating improved efficiency in generating sales revenue from its fixed assets over the years, with occasional fluctuations that should be further analyzed to understand the underlying reasons.
Peer comparison
Dec 31, 2023