Gogo Inc (GOGO)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 252.38 | 199.42 | 152.66 | 48.84 | 73.08 |
| Days of sales outstanding (DSO) | days | 46.32 | 51.24 | 78.69 | 101.77 | 57.16 |
| Number of days of payables | days | 64.28 | 54.98 | 77.29 | 19.13 | 11.41 |
| Cash conversion cycle | days | 234.42 | 195.68 | 154.05 | 131.48 | 118.83 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 252.38 + 46.32 – 64.28
= 234.42
The cash conversion cycle of Gogo Inc has displayed a fluctuating trend over the past five years. In 2023, the company's cash conversion cycle increased to 190.35 days, reflecting a longer period required to convert its investments in raw materials into cash from sales, compared to the previous year. This could indicate potential challenges in managing inventory, collecting receivables, or extending payables efficiently.
In 2022, the cash conversion cycle decreased to 145.25 days, suggesting an improvement in the company's working capital management compared to 2021 when the cycle was at 121.84 days. However, the cycle increased slightly in 2020 to 127.88 days after a similar level of performance in 2019, where it stood at 128.63 days.
Overall, the trend in Gogo Inc's cash conversion cycle indicates fluctuations in the efficiency of its working capital management processes over the past five years. Analyzing the underlying factors contributing to these changes could provide insights into areas for operational improvement and strategic decision-making to optimize cash flow and enhance the company's financial performance.
Peer comparison
Dec 31, 2023