Gogo Inc (GOGO)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 41,765 | 176,678 | 161,550 | 152,820 | 139,036 | 86,157 | 97,200 | 163,266 | 150,550 | 152,161 | 163,993 | 152,829 | 145,913 | 133,233 | 109,174 | 455,152 | 435,345 | 117,483 | 156,286 | 214,229 |
| Short-term investments | US$ in thousands | — | 18,884 | 18,920 | 21,469 | 139,036 | 24,655 | 97,200 | 24,728 | 24,796 | 25,363 | 16,087 | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.23 | 2.02 | 2.07 | 2.18 | 3.86 | 1.77 | 3.11 | 2.56 | 2.08 | 2.28 | 1.96 | 0.81 | 0.77 | 0.60 | 0.58 | 4.17 | 0.99 | 0.26 | 0.54 | 0.79 |
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 has shown fluctuations over the periods analyzed. The cash ratio measures a company's ability to cover its current liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
From March 31, 2020 to September 30, 2021, the cash ratio was generally low, indicating the company had limited cash on hand relative to its current liabilities during this period. The ratio improved significantly to 4.17 on March 31, 2021, suggesting a notable increase in cash reserves compared to short-term obligations.
Subsequently, the cash ratio fluctuated but generally remained above 1, indicating the company had sufficient cash to cover its short-term obligations. The ratio peaked at 3.86 on December 31, 2023, demonstrating a strong liquidity position. However, it dropped to 0.23 on December 31, 2024, which may raise concerns about the company's ability to meet its short-term liabilities with available cash at that particular point in time.
Overall, analyzing the cash ratio over time provides insights into Gogo Inc's liquidity management and its ability to meet short-term financial obligations with available cash resources.
Peer comparison
Dec 31, 2024