Gogo Inc (GOGO)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 444,709 | 397,577 | 404,067 | 335,716 | 269,718 |
| Total current assets | US$ in thousands | 323,093 | 314,594 | 324,149 | 249,914 | 512,226 |
| Total current liabilities | US$ in thousands | 182,028 | 71,996 | 84,370 | 188,516 | 438,135 |
| Working capital turnover | 3.15 | 1.64 | 1.69 | 5.47 | 3.64 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $444,709K ÷ ($323,093K – $182,028K)
= 3.15
Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue.
The working capital turnover for Gogo Inc has varied over the past five years. In December 2020, the working capital turnover was 3.64, indicating that the company generated $3.64 in revenue for every dollar of working capital. This ratio improved significantly by December 2021, reaching 5.47, which suggests that the company became more efficient in utilizing its working capital to generate sales.
However, the efficiency declined in the following years. By December 2022, the working capital turnover decreased to 1.69, indicating a decrease in efficiency in utilizing working capital to generate revenue. This trend continued in December 2023, with a ratio of 1.64, reflecting a further decline in efficiency.
The working capital turnover improved again by December 2024, reaching 3.15. This indicates a partial recovery in the efficiency of utilizing working capital to generate sales revenue but is still below the levels seen in 2021 and 2020.
Overall, the trend in Gogo Inc's working capital turnover shows fluctuations in efficiency over the years, with a notable improvement in 2021 followed by declines in the subsequent years. The company may need to focus on optimizing its working capital management to sustain or improve efficiency in the future.
Peer comparison
Dec 31, 2024