Gogo Inc (GOGO)
Working capital 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 |
| Total current assets | US$ in thousands | 314,594 | 324,149 | 249,914 | 512,226 | 424,825 |
| Total current liabilities | US$ in thousands | 71,996 | 84,370 | 188,516 | 438,135 | 252,642 |
| Working capital turnover | 1.57 | 1.61 | 3.00 | 1.93 | 3.76 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $380,064K ÷ ($314,594K – $71,996K)
= 1.57
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital.
Looking at the trend of Gogo Inc's working capital turnover over the past five years, we can see some fluctuations. In 2023, the working capital turnover ratio decreased to 1.64 from 1.69 in 2022. This decline may suggest a decrease in the efficiency of using working capital to drive sales.
Comparing this to 2021, where the ratio was significantly higher at 5.47, it indicates that Gogo Inc was able to generate more sales revenue per unit of working capital in that year. The subsequent years, 2020 and 2019, also had relatively high working capital turnover ratios of 3.64 and 4.85, respectively.
Overall, the working capital turnover ratio for Gogo Inc has shown some variability, with a significant peak in 2021 followed by a slight decline in 2023. Further analysis would be needed to understand the specific factors contributing to these fluctuations and to assess the company's overall working capital management efficiency.
Peer comparison
Dec 31, 2023