Gogo Inc (GOGO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.42 | 1.79 | 2.10 | 2.02 | 2.18 | 2.19 | 2.38 | 2.60 | 2.75 | 2.71 | 2.71 | 2.98 | 3.01 | 3.38 | 3.51 | 4.47 | 7.19 | 8.53 | 2.94 | 3.50 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.15 | 1.62 | 1.56 | 1.58 | 1.64 | 1.82 | 2.14 | 1.56 | 1.69 | 1.83 | 1.78 | 4.28 | 5.47 | 15.99 | 1,092.37 | 0.75 | 5.74 | 1.57 | 7.12 | 4.21 |
Inventory turnover is a measure of how efficiently Gogo Inc is managing its inventory. From March 2020 to December 2024, the inventory turnover ratio declined from 3.50 to 1.42. This decrease indicates that it took longer for the company to sell its inventory over the analyzed period, which may suggest potential issues with inventory management or sales.
Receivables turnover, which measures how quickly Gogo Inc collects outstanding receivables, was not provided in the data. Without this information, it is difficult to assess the company's performance in this area.
Payables turnover, which evaluates how efficiently the company pays its suppliers, was also not available in the data. As a result, we are unable to gauge Gogo Inc's effectiveness in managing its payables.
The working capital turnover ratio measures how effectively the company is using its working capital to generate sales. Gogo Inc's working capital turnover fluctuated significantly during the period, ranging from 0.75 to 1,092.37. Such fluctuations may indicate varying levels of efficiency in utilizing working capital, with extreme values potentially pointing to anomalies in the data or operational changes within the company.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 257.19 | 204.40 | 173.79 | 180.41 | 167.57 | 166.66 | 153.10 | 140.17 | 132.93 | 134.51 | 134.74 | 122.41 | 121.35 | 107.89 | 104.05 | 81.64 | 50.78 | 42.78 | 124.29 | 104.19 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Gogo Inc's activity ratios:
1. Days of Inventory on Hand (DOH):
- Gogo Inc's Days of Inventory on Hand have shown fluctuations over the years, ranging from around 42.78 days to 257.19 days.
- A decreasing trend can be observed from September 2020 to September 2022, indicating better inventory management efficiency.
- However, there was a sharp increase in DOH from December 2022 to December 2024, which suggests a potential issue with inventory control or declining sales turnover.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Gogo Inc's Days of Sales Outstanding (DSO), which could have provided insights into the company's accounts receivable management and efficiency in collecting payments from customers.
3. Number of Days of Payables:
- Similarly, the data does not include details on Gogo Inc's Number of Days of Payables. This ratio is vital in assessing how long a company takes to pay its suppliers, impacting its cash flow and relationships with creditors.
Overall, while the information on the Days of Inventory on Hand provides some insight into Gogo Inc's inventory management efficiency, a complete analysis of activity ratios, including DSO and payables turnover, would offer a more comprehensive view of the company's operational performance and financial health.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 2.36 | 4.00 | 3.92 | 2.25 | 3.93 | 4.37 | 4.95 | 5.27 | 5.50 | 3.32 | 5.11 | 6.70 | 8.85 | 1.52 | 1.62 |
| Total asset turnover | 0.36 | 0.50 | 0.50 | 0.50 | 0.51 | 0.53 | 0.56 | 0.54 | 0.53 | 0.53 | 0.51 | 0.52 | 0.52 | 0.72 | 0.85 | 0.46 | 0.63 | 0.58 | 0.66 | 0.69 |
Gogo Inc's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover ratios, provide insights into how efficiently the company utilizes its assets to generate revenue.
1. Fixed Asset Turnover: This ratio measures how effectively the company is utilizing its fixed assets to generate sales. From March 2020 to June 2023, Gogo Inc's Fixed Asset Turnover ratio fluctuated, indicating varying levels of efficiency in asset utilization. The ratio peaked at 8.85 in September 2020, suggesting that the company generated $8.85 in sales for every $1 invested in fixed assets. However, the ratio declined gradually thereafter, reaching 2.36 by September 2023. This decreasing trend may indicate declining efficiency in generating sales from fixed assets.
2. Total Asset Turnover: The Total Asset Turnover ratio assesses the efficiency of the company in utilizing all its assets to generate sales. Gogo Inc's Total Asset Turnover ratio hovered around 0.5 to 0.6 from March 2020 to June 2024, indicating that the company generated roughly $0.50 to $0.60 in sales for every dollar of assets owned. The stability of this ratio suggests consistent efficiency in generating revenue relative to the total assets employed.
In conclusion, while the Total Asset Turnover ratio remained relatively stable over the period, the Fixed Asset Turnover ratio showed fluctuations, signaling changes in the efficiency of utilizing fixed assets to generate sales. Gogo Inc should closely monitor these ratios to ensure optimal asset utilization and sustainable revenue generation in the long term.