Gogo Inc (GOGO)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 41,765 | 176,678 | 161,550 | 152,820 | 139,036 | 86,157 | 97,200 | 163,266 | 150,550 | 152,161 | 163,993 | 152,829 | 145,913 | 133,233 | 109,174 | 455,152 | 435,345 | 117,483 | 156,286 | 214,229 |
| Short-term investments | US$ in thousands | — | 18,884 | 18,920 | 21,469 | 139,036 | 24,655 | 97,200 | 24,728 | 24,796 | 25,363 | 16,087 | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.23 | 2.02 | 2.07 | 2.18 | 3.86 | 1.77 | 3.11 | 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 |
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 of Gogo Inc, which measures the company's ability to cover its short-term obligations with its most liquid assets, has exhibited significant fluctuations over the past several quarters.
As of December 31, 2020, the quick ratio stood at a healthy 0.99, indicating that the company had almost sufficient liquid assets to cover its current liabilities. However, in the following quarters, the quick ratio dropped significantly, reaching a low of 0.26 on September 30, 2020, suggesting a potential liquidity issue.
From March 31, 2021, the quick ratio improved drastically to 4.17, indicating a strong ability to meet short-term obligations with its liquid assets. Despite some fluctuations in the subsequent quarters, the quick ratio generally remained above 1, which is considered a positive sign in terms of liquidity.
Notably, the quick ratio peaked at 3.86 on December 31, 2023, signaling an exceptionally strong liquidity position at that point. However, it decreased slightly to 2.18 on March 31, 2024, before stabilizing around 2 in the following quarters.
Overall, the trend in Gogo Inc's quick ratio reflects fluctuating liquidity levels, with some quarters showing strong liquidity coverage while others indicating potential challenges. Investors and stakeholders should continue to monitor the company's liquidity position closely to ensure its ability to meet short-term obligations.
Peer comparison
Dec 31, 2024