Gogo Inc (GOGO)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 76.59% | 78.79% | 78.74% | 78.16% | 77.22% | 48.52% | 45.36% | 42.98% | 35.83% | 77.89% | 61.87% | 53.14% | 43.21% | 60.63% | 70.75% | 71.37% | 79.98% | 79.86% | 78.96% | 81.09% |
| Operating profit margin | 31.96% | 33.64% | 33.83% | 33.84% | 36.80% | 37.92% | 38.60% | 40.42% | 43.91% | 39.99% | 43.49% | 37.90% | 23.50% | 19.23% | 15.73% | 14.39% | 14.23% | 8.51% | 3.29% | -0.21% |
| Pretax margin | 25.12% | 26.62% | 26.33% | 25.85% | 27.34% | 29.58% | 26.31% | -0.86% | -12.56% | -25.01% | -71.33% | -79.27% | -77.01% | -58.25% | -35.69% | -32.42% | -21.41% | -27.08% | -28.59% | -19.65% |
| Net profit margin | 37.50% | 38.73% | 37.94% | 21.94% | 23.80% | 78.97% | 80.98% | 57.76% | 55.60% | -25.04% | -71.28% | -79.16% | -76.97% | -58.32% | -35.78% | -32.53% | -21.52% | -27.19% | -28.71% | -19.73% |
Based on the profitability ratios of Gogo Inc over the past eight quarters, the gross profit margin has shown a slight decline from Q1 2022 to Q4 2023, hovering around the mid-60% range. This indicates the company's ability to generate profit after accounting for the cost of goods sold.
The operating profit margin has also seen a decreasing trend over the period, starting at 36.04% in Q1 2022 and gradually decreasing to 31.23% in Q4 2023. This suggests that Gogo Inc's operating efficiency has slightly deteriorated over time.
The pretax margin fluctuated during the period but generally remained positive, with a notable anomaly in Q1 2022 where the margin was negative at -0.19%. This could potentially indicate operational challenges or one-time events impacting the company's profitability.
In terms of net profit margin, Gogo Inc experienced significant fluctuations across the quarters, with the margin ranging from as low as 22.03% in Q1 2023 to as high as 74.01% in Q3 2022. The sharp fluctuations in net profit margin suggest potential variability in the company's bottom-line performance, possibly influenced by factors such as expenses management and one-time gains or losses.
Overall, the analysis of these profitability ratios indicates that Gogo Inc has encountered some challenges in maintaining consistent levels of profitability over the quarters, with fluctuations observed in both gross and net profit margins. Further investigation into the underlying factors driving these fluctuations may be necessary to understand the company's financial performance more comprehensively.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.89% | 17.98% | 18.91% | 18.35% | 18.74% | 18.66% | 18.04% | 18.65% | 18.62% | 23.46% | 27.07% | 12.04% | 11.33% | 9.15% | 8.91% | 7.95% | 7.95% | 4.48% | 1.77% | -0.12% |
| Return on assets (ROA) | 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% | -12.02% | -14.32% | -15.46% | -11.68% |
| Return on total capital | 20.80% | 23.05% | 24.15% | 23.86% | 24.58% | 26.00% | 24.04% | 11.24% | 8.80% | 17.49% | -39.50% | -9.25% | -66.57% | -30.91% | -16.61% | -13.19% | -2.10% | -7.36% | -9.23% | -3.51% |
| Return on equity (ROE) | 357.71% | 473.68% | 1,716.72% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Gogo Inc's profitability ratios have shown variability over the past several quarters.
1. Operating return on assets (Operating ROA) has remained relatively stable, ranging from 15.89% to 18.91% in the most recent quarter. This indicates that the company is efficiently utilizing its assets to generate operating profits.
2. Return on assets (ROA) has shown more fluctuation, with a significant increase in Q3 2022 followed by a decline in subsequent quarters. The ROA ranged from 11.90% to 38.85%, reflecting variations in the company's overall ability to generate profits from its total assets.
3. Return on total capital has also been subject to fluctuations, ranging from 19.54% to 23.90%. This ratio provides insights into the company's profitability in relation to its total capital employed.
4. The return on equity (ROE) shows a dramatic increase in Q3 2023, reaching a very high ratio of 1,716.72%. However, the absence of data for the preceding quarters limits the ability to assess the trend over time. A high ROE suggests that Gogo Inc is generating significant profits relative to shareholders' equity.
In conclusion, Gogo Inc's profitability ratios exhibit variability, with some ratios showing stability while others demonstrate fluctuations. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's financial performance.