Gogo Inc (GOGO)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 8.05 | 8.31 | 8.24 | 8.82 | 7.13 | 7.28 | 7.52 | 7.32 | 6.93 | 6.15 | 5.48 | 6.03 | 8.16 | 14.42 | 8.42 | 7.10 | 6.69 | 6.56 | 6.06 | 6.20 |
| Payables turnover | 5.65 | 5.68 | 5.11 | 6.21 | 6.46 | 4.86 | 4.34 | 4.70 | 4.72 | 11.02 | 12.23 | 17.57 | 25.52 | 37.00 | 5.22 | 6.34 | 31.94 | 7.22 | 6.54 | 6.95 |
| Working capital turnover | 1.60 | 1.83 | 2.14 | 1.57 | 1.61 | 1.69 | 1.62 | 3.82 | 4.47 | 12.95 | 796.94 | 0.52 | 4.38 | 1.29 | 6.11 | 3.37 | 3.94 | 3.46 | 3.32 | 3.48 |
The activity ratios of Gogo Inc provide insights into how efficiently the company is managing its resources and operating activities.
1. Inventory Turnover:
- The inventory turnover ratio measures how many times Gogo Inc sells and replaces its inventory during a specific period.
- The decreasing trend from Q1 2023 to Q4 2023 indicates that the company is holding onto its inventory for a longer period, which may lead to higher storage costs or potentially obsolete inventory.
2. Receivables Turnover:
- The receivables turnover ratio signifies how effectively Gogo Inc collects its outstanding receivables from customers.
- The increasing trend from Q1 2022 to Q2 2023 shows that the company is getting better at converting its receivables into cash. However, the sharp drop in Q3 2023 followed by a slight recovery in Q4 2023 could indicate challenges in collecting payments from customers.
3. Payables Turnover:
- The payables turnover ratio indicates how efficiently Gogo Inc pays its suppliers and vendors.
- The fluctuating trend in payables turnover from Q1 2022 to Q4 2023 suggests varying payment practices. A higher turnover ratio may reflect a shorter payment period, while a lower ratio may indicate delayed payments to suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively Gogo Inc utilizes its working capital to generate sales.
- The decreasing trend in working capital turnover from Q1 2022 to Q4 2023 suggests that the company is generating fewer sales for each dollar of working capital invested. This implies a potential inefficiency in capital utilization or sales generation.
In conclusion, Gogo Inc's activity ratios highlight areas of strength and potential challenges in managing its inventory, receivables, payables, and working capital. Monitoring these ratios over time can help the company identify areas for improvement to enhance operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 253.62 | 263.38 | 248.12 | 221.25 | 205.07 | 190.12 | 173.12 | 156.23 | 152.73 | 71.00 | 55.57 | 52.40 | 36.52 | 57.14 | 219.51 | 197.09 | 73.20 | 264.43 | 285.65 | 277.88 |
| Days of sales outstanding (DSO) | days | 45.31 | 43.92 | 44.30 | 41.40 | 51.16 | 50.13 | 48.52 | 49.89 | 52.70 | 59.35 | 66.62 | 60.53 | 44.76 | 25.32 | 43.34 | 51.39 | 54.54 | 55.60 | 60.26 | 58.87 |
| Number of days of payables | days | 64.60 | 64.29 | 71.44 | 58.81 | 56.54 | 75.13 | 84.08 | 77.63 | 77.33 | 33.11 | 29.84 | 20.77 | 14.30 | 9.86 | 69.88 | 57.59 | 11.43 | 50.58 | 55.83 | 52.54 |
To analyze Gogo Inc's activity ratios, we look at its days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables.
1. Days of Inventory on Hand (DOH): This ratio indicates how many days it takes for the company to sell its inventory. Gogo's DOH has been increasing over the quarters, from 132.93 days in Q4 2022 to 173.47 days in Q4 2023. This suggests that the company is holding inventory for a longer period, which may tie up cash and increase holding costs.
2. Days of Sales Outstanding (DSO): DSO shows how long it takes for the company to collect revenue after making a sale. Gogo has seen fluctuations in its DSO, with a decrease from 48.97 days in Q4 2022 to 41.58 days in Q1 2023, followed by an increase to 61.06 days in Q4 2023. A higher DSO could indicate issues with collecting payments from customers promptly.
3. Number of Days of Payables: This ratio reflects how long it takes for the company to pay its suppliers. Gogo's number of days of payables has shown variability, with fluctuations from 36.65 days in Q1 2022 to 65.44 days in Q2 2022, and then a decrease to 44.18 days in Q4 2023. An increase in days of payables may indicate a strategy to delay payments and preserve cash.
Overall, Gogo's activity ratios demonstrate mixed trends in managing inventory, receivables, and payables effectively. Further analysis of the company's operational strategies and market conditions is needed to assess the impact of these ratios on its overall financial performance and liquidity position.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.50 | 0.53 | 0.56 | 0.54 | 0.51 | 0.49 | 0.47 | 0.46 | 0.42 | 0.59 | 0.62 | 0.32 | 0.48 | 0.48 | 0.57 | 0.55 | 0.56 | 0.53 | 0.54 | 0.59 |
The fixed asset turnover ratio for Gogo Inc has been relatively stable over the past eight quarters, ranging from 3.86 to 4.05. This indicates that the company efficiently generates revenue from its fixed assets. The ratio peaked in Q2 2022 at 4.95, suggesting the highest level of productivity during that period.
In contrast, the total asset turnover ratio has shown slight fluctuations, with values ranging from 0.51 to 0.56. This ratio peaked in Q2 2023, indicating that the company was able to generate more revenue from its total assets during that quarter. Overall, Gogo Inc's ability to generate sales from its total assets has remained relatively consistent over the analyzed period.
Both ratios can provide insights into Gogo Inc's operational efficiency, asset utilization, and potential areas for improvement in managing its long-term assets.