Gogo Inc (GOGO)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 145,678 | 92,059 | 152,735 | -250,036 | -146,004 |
| Total assets | US$ in thousands | 781,539 | 759,526 | 647,687 | 673,588 | 1,214,700 |
| ROA | 18.64% | 12.12% | 23.58% | -37.12% | -12.02% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $145,678K ÷ $781,539K
= 18.64%
Gogo Inc's Return on Assets (ROA) has shown significant variability over the past five years. In 2023, the ROA improved to 18.64%, indicating that the company generated $0.1864 in profit for every dollar of assets it owned during the year. This represents a notable increase compared to the previous year's ROA of 12.12%.
The ROA was particularly strong in 2021 at 23.58%, suggesting efficient utilization of assets to generate profits. However, in 2020 and 2019, the company experienced negative ROA figures of -37.12% and -12.02%, respectively. These negative ROA values indicate that Gogo Inc incurred losses relative to its assets during those years.
Overall, Gogo Inc's ROA performance has been volatile, with significant fluctuations in profitability relative to its asset base. Investors and stakeholders should monitor the company's ability to maintain and improve its ROA over time to ensure sustainable and profitable asset management.
Peer comparison
Dec 31, 2023