Gogo Inc (GOGO)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,229,230 | 781,539 | 759,526 | 647,687 | 673,588 |
| Operating ROA | 4.17% | 15.89% | 18.74% | 18.62% | 11.33% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $51,271K ÷ $1,229,230K
= 4.17%
The operating return on assets (operating ROA) of Gogo Inc has shown fluctuations over the past five years. In December 31, 2020, the operating ROA was 11.33%, indicating that the company generated $0.1133 in operating income for every $1 of assets. This ratio improved significantly to 18.62% by December 31, 2021, and slightly increased to 18.74% by December 31, 2022, showing improved operational efficiency and asset utilization.
However, in the following year, the operating ROA decreased to 15.89% by December 31, 2023, indicating a potential decline in profitability relative to its asset base. The trend continued, and by December 31, 2024, the operating ROA dropped to 4.17%, signaling a significant decrease in operating income generated per dollar of assets.
Overall, while Gogo Inc experienced fluctuations in its operating ROA over the years, it is essential for the company to analyze the reasons behind these changes to improve operational performance and maximize returns on its assets.
Peer comparison
Dec 31, 2024