Gogo Inc (GOGO)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 388,512 | 410,184 | 416,797 | 411,670 | 386,744 | 358,503 | 338,195 | 316,166 | 274,727 | 260,061 | 219,158 | 218,483 | 324,857 | 468,533 | 603,649 | 657,862 | 678,320 | 674,234 | 690,306 | 767,550 |
| Property, plant and equipment | US$ in thousands | 98,129 | 100,982 | 103,711 | 104,685 | 104,595 | 98,688 | 84,586 | 71,596 | 63,672 | 58,403 | 59,207 | 61,519 | 63,493 | 64,307 | 463,147 | 505,584 | 69,183 | 553,040 | 549,908 | 565,485 |
| Fixed asset turnover | 3.96 | 4.06 | 4.02 | 3.93 | 3.70 | 3.63 | 4.00 | 4.42 | 4.31 | 4.45 | 3.70 | 3.55 | 5.12 | 7.29 | 1.30 | 1.30 | 9.80 | 1.22 | 1.26 | 1.36 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $388,512K ÷ $98,129K
= 3.96
The fixed asset turnover ratio for Gogo Inc has shown a fluctuating pattern over the past eight quarters. The ratio ranged from 3.86 to 4.95, with the highest value recorded in Q1 2022 and the lowest in Q4 2022.
On average, Gogo Inc has been able to generate $4.10 in sales for every dollar invested in fixed assets over this period. A higher fixed asset turnover ratio is generally preferred as it indicates that the company is efficient in utilizing its fixed assets to generate revenues. However, the fluctuations in the ratio suggest that Gogo Inc's ability to generate sales from its fixed assets has varied throughout the quarters.
It would be important for Gogo Inc to further analyze the reasons behind these fluctuations to understand if there are any operational inefficiencies impacting the productivity of its fixed assets. Identifying and addressing these issues could help improve the company's overall financial performance and profitability in the long run.
Peer comparison
Dec 31, 2023