Gogo Inc (GOGO)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 444,709 | 404,720 | 402,140 | 403,302 | 397,577 | 407,930 | 415,299 | 409,914 | 404,067 | 388,204 | 370,058 | 354,597 | 335,716 | 321,050 | 300,403 | 314,668 | 425,274 | 568,950 | 703,607 | 820,652 |
| Total current assets | US$ in thousands | 323,093 | 347,414 | 344,937 | 335,305 | 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 |
| Total current liabilities | US$ in thousands | 182,028 | 97,014 | 87,365 | 79,866 | 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 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 utilizes its working capital to generate sales revenue. The working capital turnover for Gogo Inc has shown fluctuations over the reporting periods, ranging from 0.75 to 1,092.37.
A higher working capital turnover ratio indicates that the company is effectively managing its working capital to generate sales, while a lower ratio may signal inefficiencies or slower sales turnover.
In the case of Gogo Inc, the ratio experienced significant fluctuations, with the highest turnover of 1,092.37 observed in June 30, 2021, and the lowest turnover of 0.75 in March 31, 2021. These extreme fluctuations may indicate irregularities in working capital management or anomalies in sales performance during these periods.
Overall, it is essential for Gogo Inc to monitor its working capital turnover ratio consistently to ensure optimal utilization of working capital and improved operational efficiency.
Peer comparison
Dec 31, 2024