Gogo Inc (GOGO)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 68.75% | 66.98% | 63.93% | 65.24% | 65.38% | 66.29% | 65.41% | 65.38% | 66.37% | 67.43% | 68.86% | 69.34% | 69.56% | 68.43% | 67.98% | 59.42% | 52.48% | 47.36% | 45.70% | 47.42% |
| Operating profit margin | 11.53% | 24.78% | 28.48% | 31.47% | 31.23% | 33.83% | 33.95% | 33.98% | 35.22% | 35.02% | 35.27% | 36.04% | 35.93% | 32.39% | 31.72% | 3.58% | -15.89% | -13.16% | -12.77% | -3.14% |
| Pretax margin | 4.08% | 18.19% | 22.16% | 28.31% | 24.55% | 26.77% | 26.42% | 25.96% | 26.16% | 24.85% | 23.83% | -0.19% | -9.13% | -21.35% | -32.41% | -37.22% | -46.06% | -35.42% | -30.59% | -25.96% |
| Net profit margin | 3.09% | 13.94% | 16.59% | 38.61% | 36.64% | 38.95% | 38.08% | 22.03% | 22.78% | 72.93% | 74.01% | 51.50% | 45.50% | -20.29% | -52.00% | -54.96% | -58.79% | -48.02% | -30.70% | -26.07% |
Based on the data provided for Gogo Inc, let's analyze the profitability ratios over the period ranging from March 31, 2020, to December 31, 2024:
1. Gross Profit Margin:
- The gross profit margin shows the percentage of revenue that exceeds the cost of goods sold.
- Gogo Inc's gross profit margin has shown fluctuations over time, starting at around 47% in March 2020, peaking at over 69% in December 2021, and then declining slightly to around 68% by June 2022.
- However, there has been a gradual decrease in gross profit margin from June 2022 to December 2024, possibly indicating challenges in controlling production or operational costs.
2. Operating Profit Margin:
- The operating profit margin measures the percentage of revenue that remains after deducting operating expenses.
- Gogo Inc started with negative operating profit margins in early 2020 but showed a significant improvement by reaching over 35% by December 2021.
- The operating profit margin declined thereafter, dipping to around 11.5% by December 2024, hinting at increased operating expenses or decreasing operational efficiency.
3. Pre-tax Margin:
- The pre-tax margin reflects the percentage of revenue that remains after accounting for all operating expenses and before taxes.
- Gogo Inc witnessed negative pre-tax margins in early 2020, which gradually improved over time to reach around 26% by December 2022.
- However, there was a slight decline in pre-tax margin towards the end of the period, ending at approximately 4% by December 2024, possibly indicating higher tax expenses or other non-operating costs impacting profitability.
4. Net Profit Margin:
- The net profit margin indicates the percentage of revenue that translates into net income after accounting for all expenses, including taxes.
- Gogo Inc had negative net profit margins in the initial period, which turned positive and peaked at around 74% by June 2022.
- The net profit margin then fluctuated but generally trended downward, reaching around 3% by December 2024, suggesting lower profitability or increased expenses impacting the bottom line.
In conclusion, while Gogo Inc exhibited improvements in profitability margins over the period, there were fluctuations and declines in certain ratios towards the later years, indicating potential challenges in controlling costs, managing expenses, or sustaining revenue growth. Monitoring these ratios consistently can help identify areas for operational improvement and financial efficiency.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 1.12% | 6.96% | 8.31% | 19.25% | 18.64% | 20.71% | 21.21% | 11.90% | 12.12% | 38.85% | 37.85% | 26.65% | 23.58% | -14.70% | -44.37% | -25.15% | -37.12% | -27.75% | -20.29% | -17.96% |
| Return on total capital | 81.60% | 204.99% | 234.42% | 238.46% | 321.66% | 424.37% | 1,552.51% | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Return on equity (ROE) | 19.83% | 107.02% | 128.26% | 249.39% | 357.71% | 473.68% | 1,716.72% | — | — | — | — | — | — | — | — | — | — | — | — | — |
Gogo Inc's profitability ratios show a mixed performance over the specified periods. The Operating return on assets (Operating ROA) has seen a significant improvement, starting from negative percentages in 2020 and gradually increasing to around 18% by the end of 2024. This indicates that the company has been able to generate more operating income per dollar of assets over time.
In terms of Return on assets (ROA), the trend is also positive, with the ratio improving from negative figures in 2020 to around 15% by the end of 2024. This shows that the company has become more efficient in generating profit from its total assets.
Return on total capital and Return on equity (ROE) were not available for the earlier periods but showed a substantial increase in the latter half of the provided data. Both ratios experienced a sharp rise from 2023 to 2024, indicating a significant improvement in how the company generates returns for its shareholders.
Overall, Gogo Inc's profitability ratios demonstrate a positive trend, with improvements in operational efficiency and profitability over the specified period.