Gogo Inc (GOGO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 51,271 | 100,302 | 114,547 | 126,911 | 124,165 | 137,984 | 141,010 | 139,305 | 142,326 | 135,958 | 130,529 | 127,795 | 120,626 | 103,995 | 95,302 | 11,266 | -67,574 | -74,878 | -89,880 | -25,784 |
| Total assets | US$ in thousands | 1,229,230 | 810,737 | 802,677 | 808,953 | 781,539 | 767,288 | 745,513 | 759,238 | 759,526 | 728,639 | 723,566 | 685,275 | 647,687 | 443,205 | 352,036 | 687,732 | 673,588 | 984,455 | 1,064,820 | 1,191,470 |
| Operating ROA | 4.17% | 12.37% | 14.27% | 15.69% | 15.89% | 17.98% | 18.91% | 18.35% | 18.74% | 18.66% | 18.04% | 18.65% | 18.62% | 23.46% | 27.07% | 1.64% | -10.03% | -7.61% | -8.44% | -2.16% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $51,271K ÷ $1,229,230K
= 4.17%
Operating return on assets (operating ROA) measures a company's ability to generate operating income from its assets. Looking at the trend of Gogo Inc's operating ROA from March 31, 2020 to December 31, 2024, we see a roller-coaster trajectory. The company started with negative values, indicating inefficiency in generating returns from its assets. However, the trend improved significantly starting in March 31, 2021, with a positive operating ROA of 1.64%. This positive trend continued with substantial growth in profitability, reaching a peak of 27.07% by June 30, 2021.
Subsequently, Gogo Inc maintained a strong operating ROA above 15% until September 30, 2023. However, from December 31, 2023, there was a decline in the operating ROA, falling to 4.17% by December 31, 2024. This downward trend could suggest challenges in efficiently utilizing its assets to generate operating income.
Overall, while Gogo Inc showed impressive improvement in its operating ROA over the period analyzed, the recent decline raises concerns about its ability to sustain profitability and efficiency in utilizing its assets. Further analysis of the company's operational performance and strategic decisions might provide insights into the factors driving these fluctuations in operating ROA.
Peer comparison
Dec 31, 2024