Gogo Inc (GOGO)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 90,935 | 87,020 | 88,630 | 89,905 | 88,092 | 89,460 | 89,698 | 85,196 | 81,197 | 154,033 | 180,113 | 198,936 | 281,020 | 224,240 | 216,316 | 228,119 | 175,537 | 184,152 | 193,630 | 193,554 |
| Inventory | US$ in thousands | 63,187 | 62,792 | 60,250 | 54,496 | 49,493 | 46,598 | 42,543 | 36,467 | 33,976 | 29,964 | 27,422 | 28,560 | 28,114 | 35,107 | 130,092 | 123,179 | 35,205 | 133,413 | 151,533 | 147,354 |
| Inventory turnover | 1.44 | 1.39 | 1.47 | 1.65 | 1.78 | 1.92 | 2.11 | 2.34 | 2.39 | 5.14 | 6.57 | 6.97 | 10.00 | 6.39 | 1.66 | 1.85 | 4.99 | 1.38 | 1.28 | 1.31 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $90,935K ÷ $63,187K
= 1.44
Inventory turnover is a key ratio that measures how efficiently a company manages its inventory levels by indicating how many times during a period the company sells and replaces its average inventory. Looking at the trend of Gogo Inc's inventory turnover over the past eight quarters, we observe a declining pattern from Q1 2022 to Q4 2023.
The company's inventory turnover ratio decreased from 2.98 in Q1 2022 to 2.10 in Q4 2023. This suggests that Gogo Inc has been taking longer to sell and replace its inventory over this period. A lower inventory turnover may indicate excess inventory levels or difficulties in selling products, which can tie up capital and lead to increased holding costs.
It is important for Gogo Inc to closely monitor its inventory turnover ratio and take corrective actions, such as optimizing inventory management practices, improving demand forecasting, and adjusting procurement strategies, to ensure efficient operations and maximize profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023