Gogo Inc (GOGO)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 51,271 | 124,165 | 142,326 | 120,626 | 76,351 |
| Revenue | US$ in thousands | 444,709 | 397,577 | 404,067 | 335,716 | 269,718 |
| Operating profit margin | 11.53% | 31.23% | 35.22% | 35.93% | 28.31% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $51,271K ÷ $444,709K
= 11.53%
Operating profit margin is a key financial ratio that reflects the efficiency and profitability of a company's core operations. Analyzing Gogo Inc's operating profit margin over the years from 2020 to 2024 reveals fluctuations in its performance.
As of December 31, 2020, Gogo Inc's operating profit margin stood at 28.31%, indicating that 28.31% of the company's revenue was being converted into operating profit. The margin shows an improvement in the following year, reaching 35.93% by December 31, 2021, reflecting enhanced operational efficiency.
In 2022, the operating profit margin slightly decreased to 35.22%, suggesting that the company's profitability from operations remained relatively strong. However, by December 31, 2023, the margin declined further to 31.23%, indicating potential challenges or changes in the company's operations impacting profitability.
The most noticeable change occurred by the end of 2024, where Gogo Inc's operating profit margin dropped significantly to 11.53%. This sharp decline may raise concerns about the company's ability to generate profits from its core business activities, indicating a potential need for cost control or revenue enhancement measures.
Overall, the fluctuation in Gogo Inc's operating profit margin over the years highlights the importance of monitoring operational efficiency and profitability to ensure sustainable financial performance and long-term success.
Peer comparison
Dec 31, 2024