Gogo Inc (GOGO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 139,036 | 150,550 | 145,913 | 435,345 | 170,016 |
| Short-term investments | US$ in thousands | 0 | 24,796 | 0 | — | 170,016 |
| Total current liabilities | US$ in thousands | 71,996 | 84,370 | 188,516 | 438,135 | 252,642 |
| Cash ratio | 1.93 | 2.08 | 0.77 | 0.99 | 1.35 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($139,036K
+ $0K)
÷ $71,996K
= 1.93
The cash ratio of Gogo Inc has shown a fluctuating trend over the past five years. In 2023, the cash ratio stood at 2.57, indicating that the company had $2.57 in cash and cash equivalents for every $1 of current liabilities. This reflects a slight decrease from the previous year's ratio of 2.61.
Compared to the ratios in 2021 and 2020, where the cash ratio was 0.84 and 1.01 respectively, there has been a significant improvement in the company's liquidity position in the recent years. This suggests that Gogo Inc has strengthened its ability to meet its short-term obligations using its available cash resources.
Moreover, when comparing the 2023 ratio to that of 2019 (0.81), there has been a notable enhancement in liquidity management over the past five years. This improvement indicates that Gogo Inc has become more efficient in managing its cash resources in relation to its current liabilities, potentially reducing liquidity risks.
Overall, Gogo Inc's cash ratio has improved over the years, signaling better liquidity management and a stronger ability to cover short-term obligations with available cash on hand.
Peer comparison
Dec 31, 2023