Gogo Inc (GOGO)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 41,765 | 139,036 | 150,550 | 145,913 | 435,345 |
| Short-term investments | US$ in thousands | — | 23,227 | 24,796 | 925 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 182,028 | 71,996 | 84,370 | 188,516 | 438,135 |
| Quick ratio | 0.23 | 2.25 | 2.08 | 0.78 | 0.99 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($41,765K
+ $—K
+ $—K)
÷ $182,028K
= 0.23
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.
Analyzing Gogo Inc's quick ratio over the past five years, we can observe fluctuations in the company's short-term liquidity position.
- As of December 31, 2020, Gogo Inc had a quick ratio of 0.99, indicating that it had almost enough liquid assets to cover its current liabilities.
- By December 31, 2021, the quick ratio decreased to 0.78, suggesting a potential strain on the company's ability to meet its short-term obligations promptly.
- The quick ratio improved significantly to 2.08 by December 31, 2022, and further increased to 2.25 by December 31, 2023. These values reflect a notable improvement in Gogo Inc's liquidity position, with more than sufficient liquid assets to cover its short-term liabilities.
- However, there was a significant decline in the quick ratio to 0.23 by December 31, 2024, raising concerns about the company's short-term liquidity management.
Overall, the fluctuating trend in Gogo Inc's quick ratio warrants further investigation into the company's management of its current assets and liabilities to ensure sustainable liquidity levels in the future.
Peer comparison
Dec 31, 2024