Gogo Inc (GOGO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 75.96% | 76.54% | 55.85% | -47.09% | 72.83% |
| Operating profit margin | 32.67% | 36.86% | 65.56% | 53.44% | 14.92% |
| Pretax margin | 25.68% | 27.38% | -18.75% | -175.12% | -22.47% |
| Net profit margin | 38.33% | 23.84% | 83.01% | -175.02% | -22.56% |
Gogo Inc has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has remained relatively stable, ranging from 48.24% in 2019 to 69.56% in 2021, indicating effective cost management and pricing strategies in its operations.
The operating profit margin has seen steady growth, with a significant jump from 4.39% in 2019 to 35.93% in 2021, suggesting improved operational efficiency and better control over operating expenses.
The pretax margin reflects the company's ability to generate profits before tax expenses. While it was negative in 2020 and 2021, indicating financial challenges, it rebounded significantly in 2022 and 2023 to 24.55% and 26.16%, respectively, showcasing a recovery in profitability.
The net profit margin, which indicates the company's bottom-line profitability after all expenses, has shown a mix of positive and negative trends. Notably, the sharp improvement from -92.70% in 2020 to 45.50% in 2021 indicates a significant turnaround in the company's financial performance.
Overall, Gogo Inc's profitability ratios demonstrate a positive trend, with improvements across various metrics over the past years, reflecting effective cost control measures and operational enhancements.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.89% | 18.74% | 18.62% | 11.33% | 7.95% |
| Return on assets (ROA) | 18.64% | 12.12% | 23.58% | -37.12% | -12.02% |
| Return on total capital | 20.80% | 24.58% | 8.80% | -66.57% | -2.13% |
| Return on equity (ROE) | 357.71% | — | — | — | — |
Gogo Inc's profitability ratios indicate a generally positive trend over the past five years.
Operating return on assets (Operating ROA) has shown consistent improvement from 3.02% in 2019 to 15.89% in 2023, indicating that the company is generating more operating income relative to its total assets.
Return on assets (ROA) has been volatile, with a significant decline in 2020 to -37.12%, but has since rebounded to 18.64% in 2023. This ratio reflects the company's ability to generate profit from its assets.
Return on total capital has also demonstrated a positive trend, increasing from 5.23% in 2019 to 19.54% in 2023, indicating an efficient use of both equity and debt capital in generating returns.
Return on equity (ROE) experienced a significant spike to 357.71% in 2023, suggesting a substantial increase in profitability relative to shareholder equity, although historic data for comparison is missing.
Overall, Gogo Inc's profitability ratios show a favorable trajectory, with improving returns on assets, capital, and equity over the years, reflecting positively on the company's operational and financial performance. However, a closer analysis of the reasons behind the fluctuations in ROA and the sudden surge in ROE in 2023 would be necessary to provide a more nuanced understanding of the company's profitability dynamics.