Gogo Inc (GOGO)
Quick ratio
| 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 | US$ in thousands | 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 | 170,016 | 217,662 | 181,867 | 188,690 |
| Short-term investments | US$ in thousands | 0 | 24,655 | 0 | 24,728 | 24,796 | 25,363 | 16,087 | — | 0 | — | — | — | — | — | — | — | 170,016 | 217,662 | 181,867 | 188,690 |
| Receivables | US$ in thousands | 48,233 | 49,356 | 50,587 | 46,698 | 54,210 | 49,234 | 44,961 | 43,217 | 39,666 | 42,290 | 39,999 | 36,232 | 39,833 | 32,497 | 71,684 | 92,619 | 101,360 | 102,708 | 113,975 | 123,791 |
| Total current liabilities | US$ in thousands | 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 | 252,642 | 283,727 | 270,098 | 271,256 |
| 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 |
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 been relatively stable over the past eight quarters, ranging from a low of 1.25 in Q1 2022 to a high of 3.83 in Q1 2023. This indicates strong liquidity and the company's ability to meet its short-term obligations using its most liquid assets.
The trend reveals an upward trajectory from Q1 2022 to Q1 2023, suggesting an improvement in the company's short-term liquidity position. However, the quick ratio dipped in Q2 2023 before rebounding in the following quarters. Overall, the quick ratio consistently remains above 1, indicating that Gogo Inc has a sufficient amount of liquid assets to cover its current liabilities.
It is worth noting that a quick ratio above 1 indicates that the company can meet its short-term obligations without relying heavily on inventory sales, which is generally a positive sign for investors and creditors. However, the company should continue to monitor its liquidity position to ensure it remains stable and can withstand any unforeseen financial challenges.
Peer comparison
Dec 31, 2023