Gogo Inc (GOGO)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 288,681 | 295,562 | 102,762 | -67,266 | 471,350 |
| Revenue | US$ in thousands | 380,064 | 386,148 | 183,999 | 142,860 | 647,192 |
| Gross profit margin | 75.96% | 76.54% | 55.85% | -47.09% | 72.83% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $288,681K ÷ $380,064K
= 75.96%
Gogo Inc's gross profit margin has shown a consistent and generally positive trend over the past five years, indicating healthy profitability in its operations. The business has maintained a strong gross profit margin, with figures ranging from 66.37% to 69.56% in the years 2020 and 2021, respectively. This demonstrates the company's ability to effectively manage its cost of goods sold and generate sufficient revenue to cover its direct production costs.
The most notable improvement in gross profit margin was observed from 2019 to 2020 when it increased significantly from 48.24% to 68.72%. This suggests that Gogo Inc successfully enhanced its operational efficiency and pricing strategies during this period.
Although there was a slight dip in the gross profit margin in 2023 compared to the previous year, the overall trend remains positive and indicates a consistent focus on maximizing profitability through effective cost management and revenue generation strategies.
Overall, Gogo Inc's gross profit margin analysis reflects a financially sound and well-managed business, with a consistent track record of maintaining strong profitability in its core operations.
Peer comparison
Dec 31, 2023