Gogo Inc (GOGO)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 170,016 | 217,662 | 181,867 | 188,690 |
| Short-term investments | US$ in thousands | 0 | 24,655 | 0 | 24,728 | 24,796 | 25,363 | 16,087 | — | 0 | — | — | — | — | — | — | — | 170,016 | 217,662 | 181,867 | 188,690 |
| Total current liabilities | US$ in thousands | 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 | 252,642 | 283,727 | 270,098 | 271,256 |
| Cash ratio | 1.93 | 1.77 | 1.56 | 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 | 1.35 | 1.53 | 1.35 | 1.39 |
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 fluctuations over the past eight quarters, ranging from a low of 0.92 in Q1 2022 to a high of 3.19 in Q1 2023. The cash ratio represents the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a stronger ability to cover these obligations.
In general, Gogo Inc has maintained a healthy cash ratio above 1, indicating that it has sufficient cash to cover its short-term liabilities. The company's cash ratio peaked in Q1 2023 at 3.19, reflecting a significant increase in its ability to meet short-term obligations with cash on hand. This can be seen as a positive signal for investors and creditors, as it suggests improved liquidity and financial stability.
However, the fluctuations in the cash ratio over the quarters may indicate variability in the company's cash management practices or changes in its operating cash flows. It is important for Gogo Inc to monitor and manage its cash position effectively to ensure it can meet its short-term financial obligations in a sustainable manner.
Overall, the trend of Gogo Inc's cash ratio demonstrates variations in its liquidity position over the quarters, with a general pattern of maintaining sufficient cash reserves to cover short-term liabilities.
Peer comparison
Dec 31, 2023