Gogo Inc (GOGO)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 380,064 | 386,148 | 183,999 | 142,860 | 647,192 |
| Receivables | US$ in thousands | 48,233 | 54,210 | 39,666 | 39,833 | 101,360 |
| Receivables turnover | 7.88 | 7.12 | 4.64 | 3.59 | 6.39 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $380,064K ÷ $48,233K
= 7.88
The receivables turnover ratio reflects Gogo Inc's ability to efficiently collect payments from its customers. A higher receivables turnover ratio indicates that the company is collecting payments more quickly, which is typically a positive sign of strong liquidity and effective credit management.
From 2019 to 2023, Gogo Inc's receivables turnover ratio has fluctuated. In 2019, the ratio was at its peak of 8.25, indicating that the company was able to convert its accounts receivable into cash more than 8 times during the year. However, the ratio decreased in the following years, with a significant drop to 5.89 in 2021.
The decline in the receivables turnover ratio from 2019 to 2021 suggests that Gogo Inc may have faced challenges in collecting payments efficiently during those years. However, there was a slight improvement in 2022, with the ratio increasing to 7.45, before dropping again to 5.98 in 2023.
Overall, the trend in Gogo Inc's receivables turnover ratio indicates some variability in its ability to collect payments promptly. Further analysis of the company's credit policies, customer base, and collection procedures may provide insights into the factors contributing to the fluctuations in the receivables turnover ratio over the years.
Peer comparison
Dec 31, 2023