Gogo Inc (GOGO)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 444,709 | 397,577 | 404,067 | 335,716 | 269,718 |
| Property, plant and equipment | US$ in thousands | — | — | 179,856 | 63,672 | 63,493 |
| Fixed asset turnover | — | — | 2.25 | 5.27 | 4.25 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $444,709K ÷ $—K
= —
The fixed asset turnover ratio indicates how efficiently a company utilizes its fixed assets to generate revenue. Looking at the data for Gogo Inc, we observe an increasing trend in the fixed asset turnover ratio from 4.25 in 2020 to 5.27 in 2021, indicating improvement in the company's ability to generate sales from its fixed assets.
However, in 2022, there was a significant decrease in the fixed asset turnover ratio to 2.25, which suggests a potential decline in the efficiency of utilizing fixed assets to generate revenue. The lack of data for 2023 and 2024 makes it challenging to assess the trend further or draw concrete conclusions for those years.
Overall, a high fixed asset turnover ratio is generally favorable as it signifies effective asset management. Gogo Inc should aim to maintain or improve its fixed asset turnover ratio to ensure optimal utilization of its fixed assets in generating revenue.
Peer comparison
Dec 31, 2024