Gogo Inc (GOGO)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 388,512 | 410,184 | 416,797 | 411,670 | 386,744 | 358,503 | 338,195 | 316,166 | 274,727 | 260,061 | 219,158 | 218,483 | 324,857 | 468,533 | 603,649 | 657,862 | 678,320 | 674,234 | 690,306 | 767,550 |
| Total current assets | US$ in thousands | 314,594 | 286,833 | 256,760 | 335,447 | 324,149 | 290,408 | 300,001 | 271,052 | 249,914 | 240,472 | 188,397 | 529,569 | 512,226 | 819,034 | 390,473 | 466,489 | 424,825 | 478,801 | 477,833 | 491,975 |
| Total current liabilities | US$ in thousands | 71,996 | 62,501 | 62,411 | 73,394 | 84,370 | 77,944 | 91,673 | 188,298 | 188,516 | 220,395 | 188,122 | 109,215 | 438,135 | 455,889 | 291,611 | 271,423 | 252,642 | 283,727 | 270,098 | 271,256 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $388,512K ÷ ($314,594K – $71,996K)
= 1.60
The working capital turnover for Gogo Inc has fluctuated over the past eight quarters, ranging from 1.56 to 4.28. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue.
In Q1 2022, the working capital turnover was at its highest at 4.28, suggesting that Gogo Inc was effectively utilizing its working capital to drive sales during that period. However, this high turnover ratio could also imply that the company might be experiencing liquidity issues or potential difficulties in managing its short-term assets and liabilities efficiently.
Throughout the following quarters, the working capital turnover ratio decreased but remained relatively consistent, with some fluctuation. In Q3 2023, the ratio dropped to 1.82, indicating a potential decrease in efficiency in utilizing working capital to generate sales revenue compared to the previous quarter.
Overall, the trend in Gogo Inc's working capital turnover ratio suggests that the company has been able to maintain a moderate level of efficiency in managing its working capital over the analyzed period. It is essential for the company to monitor this ratio closely to ensure optimal utilization of resources and sustainable growth in the long run.
Peer comparison
Dec 31, 2023