Gogo Inc (GOGO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 41,765 | 139,036 | 150,550 | 145,913 | 435,345 |
| Short-term investments | US$ in thousands | — | 23,227 | 24,796 | 925 | — |
| Total current liabilities | US$ in thousands | 182,028 | 71,996 | 84,370 | 188,516 | 438,135 |
| Cash ratio | 0.23 | 2.25 | 2.08 | 0.78 | 0.99 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($41,765K
+ $—K)
÷ $182,028K
= 0.23
The cash ratio of Gogo Inc provides insights into the company's ability to cover its short-term obligations with its cash and cash equivalents.
As of December 31, 2020, the cash ratio was 0.99, indicating that for every dollar of current liabilities, the company had $0.99 in cash and cash equivalents.
By December 31, 2021, the cash ratio decreased to 0.78, which might suggest a tighter liquidity position compared to the previous year.
However, the trend reversed significantly by December 31, 2022, and by December 31, 2023, the cash ratio improved to 2.08 and then further increased to 2.25 by December 31, 2024.
The significant increase in the cash ratio from 2021 to 2024 indicates an improvement in Gogo Inc's liquidity position and its ability to meet short-term obligations comfortably with its available cash resources.
The fluctuation and improvement in the cash ratio over the years highlight the importance of monitoring a company's liquidity position to assess its financial health and ability to manage short-term obligations effectively.
Peer comparison
Dec 31, 2024