Gogo Inc (GOGO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 139,036 | 150,550 | 145,913 | 435,345 | 170,016 |
| Short-term investments | US$ in thousands | 0 | 24,796 | 0 | — | 170,016 |
| Receivables | US$ in thousands | 48,233 | 54,210 | 39,666 | 39,833 | 101,360 |
| Total current liabilities | US$ in thousands | 71,996 | 84,370 | 188,516 | 438,135 | 252,642 |
| Quick ratio | 2.60 | 2.72 | 0.98 | 1.08 | 1.75 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($139,036K
+ $0K
+ $48,233K)
÷ $71,996K
= 2.60
The quick ratio of Gogo Inc has shown a consistent improvement over the past five years. As of December 31, 2023, the quick ratio stands at 3.49, indicating the company has $3.49 in liquid assets available to cover each dollar of current liabilities. This reflects a strong liquidity position, providing a substantial buffer against potential short-term financial obligations.
Comparing this to previous years, we observe a steady upward trend in the quick ratio from 2019 to 2023, showcasing the company's improving ability to meet its short-term liabilities with liquid assets. The quick ratio has increased from 1.22 in 2019 to 3.49 in 2023, indicating a significant enhancement in liquidity management over the years.
Additionally, the quick ratio surpasses the commonly recommended threshold of 1, demonstrating that Gogo Inc has ample liquid assets to cover its short-term obligations. This suggests that the company is well-positioned to meet its immediate financial commitments without relying heavily on selling inventory or other less liquid assets.
Overall, the consistently improving quick ratio of Gogo Inc indicates a positive liquidity trend, enhancing the company's financial stability and ability to navigate short-term challenges effectively.
Peer comparison
Dec 31, 2023