Gogo Inc (GOGO)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 323,093 | 347,414 | 344,937 | 335,305 | 314,594 | 286,833 | 256,760 | 335,447 | 324,149 | 290,408 | 300,001 | 271,052 | 249,914 | 240,472 | 188,397 | 529,569 | 512,226 | 819,034 | 390,473 | 466,489 |
| 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 |
| Current ratio | 1.77 | 3.58 | 3.95 | 4.20 | 4.37 | 4.59 | 4.11 | 4.57 | 3.84 | 3.73 | 3.27 | 1.44 | 1.33 | 1.09 | 1.00 | 4.85 | 1.17 | 1.80 | 1.34 | 1.72 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $323,093K ÷ $182,028K
= 1.77
Gogo Inc's current ratio fluctuated over the period under review. The current ratio measures the company's ability to meet its short-term financial obligations. A higher current ratio indicates a better ability to cover its current liabilities with its current assets.
From March 31, 2020, to June 30, 2020, the current ratio decreased from 1.72 to 1.34, suggesting a potential decrease in short-term liquidity. Subsequently, it increased to 1.80 by September 30, 2020, before dropping to 1.17 by December 31, 2020, indicating a potential strain on the company's ability to meet immediate liabilities.
The ratio significantly improved to 4.85 by March 31, 2021, possibly due to either an increase in current assets or a decrease in current liabilities. However, the ratio dropped to 1.00 by June 30, 2021, below the ideal 1.5 threshold, signaling potential liquidity concerns.
There was a slight recovery to 1.09 by September 30, 2021, and further improvement to 1.33 by December 31, 2021. The current ratio continued to show an increasing trend up to March 31, 2024, reaching a peak of 4.57.
Overall, the current ratio for Gogo Inc fluctuated during the period but generally showed an increasing trend from 2021 to 2024, indicating an enhanced ability to cover short-term obligations with current assets. Nonetheless, fluctuations in the ratio should be monitored to ensure the company's liquidity remains stable.
Peer comparison
Dec 31, 2024