Gogo Inc (GOGO)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 257.19 | 204.40 | 173.79 | 180.41 | 167.57 | 166.66 | 153.10 | 140.17 | 132.93 | 134.51 | 134.74 | 122.41 | 121.35 | 107.89 | 104.05 | 81.64 | 50.78 | 42.78 | 124.29 | 104.19 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 257.19 | 204.40 | 173.79 | 180.41 | 167.57 | 166.66 | 153.10 | 140.17 | 132.93 | 134.51 | 134.74 | 122.41 | 121.35 | 107.89 | 104.05 | 81.64 | 50.78 | 42.78 | 124.29 | 104.19 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 257.19 + — – —
= 257.19
The cash conversion cycle of Gogo Inc has shown fluctuations over the periods analyzed. In March 2020, the company had a relatively low cash conversion cycle of 104.19 days, indicating efficient cash management. However, this elongated in the subsequent quarters with the highest cycle of 257.19 days reported in December 2024.
The company experienced significant variations in its cash conversion cycle over the quarters, suggesting possible challenges in managing its working capital effectively. Generally, a longer cash conversion cycle may indicate inefficiencies in the company's operations, such as slow collections from customers or extended payment terms to suppliers.
It is essential for Gogo Inc to monitor and improve its cash conversion cycle to ensure optimal cash flow management and liquidity. By addressing factors contributing to the extended cycle, the company can enhance its financial health and operational efficiency in the long run.
Peer comparison
Dec 31, 2024