Gogo Inc (GOGO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 124,165 | 142,326 | 120,626 | 76,351 | 96,532 |
| Total assets | US$ in thousands | 781,539 | 759,526 | 647,687 | 673,588 | 1,214,700 |
| Operating ROA | 15.89% | 18.74% | 18.62% | 11.33% | 7.95% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $124,165K ÷ $781,539K
= 15.89%
Operating Return on Assets (ROA) is a key financial ratio that indicates the efficiency of a company in generating operating income relative to its total assets. Looking at the trend of Gogo Inc's operating ROA over the past five years, we observe fluctuations in the company's operational efficiency.
In 2019, Gogo Inc's operating ROA stood at 3.02%, showing a relatively lower level of operational efficiency. However, over the subsequent years, there was a notable improvement in performance. By the end of 2020, the operating ROA increased to 11.33%, indicating a significant enhancement in the company's ability to generate operating income relative to its total assets.
The positive trend continued in 2021 and 2022 with operating ROA values of 18.62% and 18.74% respectively, reflecting a sustained high level of operational efficiency during these years. However, in 2023, there was a slight dip in operating ROA to 15.89%, which could be an indication of potential challenges or changes in the company's operations impacting its efficiency.
Overall, the upward trend from 2019 to 2022 demonstrates Gogo Inc's efforts to improve its operational performance and maximize the utilization of its assets to generate operating income. The slight decline in 2023 suggests the importance of monitoring the company's operational efficiency closely to address any potential issues that may affect its profitability in the future.
Peer comparison
Dec 31, 2023