Gogo Inc (GOGO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.68 | 1.69 | 1.77 | 1.81 |
| Quick ratio | 2.60 | 2.56 | 2.37 | 3.20 | 2.72 | 2.91 | 2.45 | 1.04 | 0.98 | 0.80 | 0.79 | 4.50 | 1.08 | 0.33 | 0.78 | 1.13 | 1.75 | 1.90 | 1.77 | 1.85 |
| 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 |
The liquidity ratios of Gogo Inc have shown a consistent improvement over the quarters, indicating strong liquidity position. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has steadily increased from 3.84 in Q4 2022 to 4.37 in Q4 2023, suggesting the company has ample current assets to meet its current liabilities.
Similarly, the quick ratio, which excludes inventory from current assets to provide a more conservative measure of liquidity, has also improved from 3.26 in Q4 2022 to 3.49 in Q4 2023. This indicates that Gogo Inc has a healthy level of liquid assets to cover its short-term liabilities even without relying on inventory.
Moreover, the cash ratio, which focuses solely on cash and cash equivalents to current liabilities, has displayed a positive trend from 2.61 in Q4 2022 to 2.57 in Q4 2023. This suggests that the company has a sufficient amount of cash to meet its immediate obligations.
Overall, the increasing trend in all three liquidity ratios reflects Gogo Inc's strong liquidity position and ability to meet its short-term obligations comfortably. It indicates the company's ability to manage liquidity effectively and covers its liabilities in the short run.
Additional liquidity measure
| 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 conversion cycle | days | 234.34 | 243.00 | 220.99 | 203.83 | 199.69 | 165.12 | 137.56 | 128.50 | 128.10 | 97.24 | 92.35 | 92.16 | 66.97 | 72.60 | 192.98 | 190.89 | 116.32 | 269.45 | 290.08 | 284.20 |
The cash conversion cycle of Gogo Inc has fluctuated over the past eight quarters, ranging from 123.88 days to 190.35 days. In general, the trend shows an increasing cycle length, indicating that the company is taking longer to convert its investments in inventory and other resources into cash from sales.
The cycle peaked in Q4 2023 at 190.35 days, which suggests that Gogo Inc may be experiencing challenges in efficiently managing its working capital and liquidity. This extended cycle may lead to increased financial strain and potential cash flow issues in meeting short-term obligations.
On the other hand, the lowest cycle was observed in Q1 2022 at 123.88 days, indicating a period of improved efficiency in converting investment inputs into cash receipts. This shorter cycle suggests better working capital management and optimized operational processes.
Overall, the varying cash conversion cycles of Gogo Inc illustrate the importance of monitoring working capital closely to ensure the company's financial health and ability to meet its obligations efficiently and effectively.