Gogo Inc (GOGO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 99,042 | 132,951 | 135,900 | 102,195 | 84,372 |
| Inventory | US$ in thousands | 97,934 | 63,187 | 49,493 | 33,976 | 28,114 |
| Inventory turnover | 1.01 | 2.10 | 2.75 | 3.01 | 3.00 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $99,042K ÷ $97,934K
= 1.01
Based on the provided data for Gogo Inc's inventory turnover ratio over the years, we can observe a slight fluctuation in the efficiency of managing inventory. The inventory turnover ratio measures the number of times a company sells and replaces its inventory during a specific period.
In December 2020, Gogo Inc had an inventory turnover ratio of 3.00, indicating that the company sold and replaced its inventory 3 times during the year. The ratio increased marginally to 3.01 by December 2021, showing a similar level of efficiency in managing inventory.
However, there was a decrease in efficiency by December 2022, with the inventory turnover ratio dropping to 2.75. This suggests a slight slowdown in the rate at which Gogo Inc is selling and replacing its inventory.
The trend continued in the subsequent years, with the inventory turnover ratio decreasing to 2.10 by December 2023 and significantly dropping to 1.01 by December 2024. These declining ratios indicate that Gogo Inc may be experiencing challenges in effectively managing its inventory levels, possibly leading to excess inventory or slow-moving goods.
Overall, the decreasing trend in Gogo Inc's inventory turnover ratio over the years highlights the importance of closely monitoring and optimizing inventory management practices to improve operational efficiency and financial performance.
Peer comparison
Dec 31, 2024