Gogo Inc (GOGO)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 314,594 | 324,149 | 249,914 | 512,226 | 424,825 |
| Total current liabilities | US$ in thousands | 71,996 | 84,370 | 188,516 | 438,135 | 252,642 |
| Current ratio | 4.37 | 3.84 | 1.33 | 1.17 | 1.68 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $314,594K ÷ $71,996K
= 4.37
The current ratio of Gogo Inc has exhibited fluctuations over the past five years, ranging from 1.17 in 2020 to 4.37 in 2023. The ratio peaked in 2023, indicating an improvement in the company's short-term liquidity position compared to the previous years. This may suggest that Gogo Inc has increased its current assets relative to its current liabilities, enhancing its ability to meet its short-term obligations.
However, it is important to note that the current ratio was relatively low in 2021, which could indicate potential liquidity concerns during that period. The significant increase in the ratio from 2021 to 2022 and then to 2023 reflects a positive trend in the company's liquidity management.
Overall, the increasing current ratio trend from 2020 to 2023 suggests that Gogo Inc has strengthened its short-term solvency position and may have better ability to cover its current liabilities with its current assets. This improvement in liquidity may be a result of effective management of working capital and financial resources.
Peer comparison
Dec 31, 2023