Gogo Inc (GOGO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 91,383 | 90,586 | 81,237 | 210,126 | 175,842 |
| Inventory | US$ in thousands | 63,187 | 49,493 | 33,976 | 28,114 | 35,205 |
| Inventory turnover | 1.45 | 1.83 | 2.39 | 7.47 | 4.99 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $91,383K ÷ $63,187K
= 1.45
Inventory turnover measures how efficiently a company manages its inventory by calculating the number of times inventory is sold and replaced within a specific period. Gogo Inc's inventory turnover has shown a decreasing trend over the past five years, declining from 3.69 in 2019 to 2.10 in 2023. This indicates that the company is selling its inventory less frequently compared to previous years. A lower inventory turnover may suggest overstocking, slow-moving inventory, or ineffective inventory management. It could potentially lead to higher carrying costs, obsolete inventory, and reduced liquidity. Gogo Inc may need to address these inventory management issues to improve operational efficiency and financial performance.
Peer comparison
Dec 31, 2023