Gogo Inc (GOGO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 56,565 | 124,165 | 144,589 | 36,831 | 76,351 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 69,324 | 40,725 | -101,869 | -320,154 | -641,114 |
| Return on total capital | 81.60% | 304.89% | — | — | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $56,565K ÷ ($—K + $69,324K)
= 81.60%
Based on the provided data, Gogo Inc's return on total capital has shown significant fluctuations over the years, ranging from not being available in 2020 to reaching an exceptionally high level of 304.89% by December 31, 2023. However, the return on total capital decreased substantially to 81.60% by December 31, 2024.
The substantial increase in the return on total capital from 2020 to 2023 indicates that Gogo Inc was able to generate more returns relative to the total capital invested, which could signify improved operational efficiency or effective utilization of the company's resources during this period.
Nevertheless, the notable decrease in the return on total capital by the end of 2024 suggests a potential shift in the company's profitability and efficiency levels. It would be essential for stakeholders to further investigate the reasons behind this decline and assess the company's strategies to enhance its return on total capital in the future.
Peer comparison
Dec 31, 2024