Gogo Inc (GOGO)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 97,603 | 105,717 | -34,495 | -250,182 | -145,441 |
| Revenue | US$ in thousands | 380,064 | 386,148 | 183,999 | 142,860 | 647,192 |
| Pretax margin | 25.68% | 27.38% | -18.75% | -175.12% | -22.47% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $97,603K ÷ $380,064K
= 25.68%
Gogo Inc's pretax margin has demonstrated varying trends over the past five years. In 2023, the pretax margin stood at 24.55%, indicating that for every dollar of revenue generated, the company retained approximately 24.55 cents before accounting for income taxes. This represented a slight decrease from the previous year's pretax margin of 26.16%.
The significant improvement from negative pretax margins in 2021 (-9.13%) to positive margins in 2022 and 2023 is noteworthy. It suggests that Gogo Inc has made operational improvements or cost-cutting measures to enhance profitability. However, the company faced challenges in 2020 and 2019 with pretax margins of -18.06% and -17.35%, respectively, indicating a sustained period of losses or low profitability.
Overall, while there have been positive signs of recovery in recent years, Gogo Inc should continue to monitor and manage its expenses and revenue streams effectively to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023