Gogo Inc (GOGO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 130,659 | 143,446 | 144,717 | 143,380 | 144,589 | 146,381 | 131,477 | 46,355 | 32,977 | 23,721 | -47,302 | -49,257 | -124,395 | -148,214 | -91,267 | -84,190 | -14,734 | -52,491 | -67,227 | -26,213 |
| Long-term debt | US$ in thousands | 587,501 | 588,733 | 590,051 | 688,991 | 690,173 | 691,337 | 692,482 | 693,617 | 694,760 | 695,894 | 697,035 | 1,163,820 | 827,968 | 1,126,630 | 1,118,600 | 1,124,710 | 1,101,250 | 1,096,170 | 1,092,320 | 1,030,360 |
| Total stockholders’ equity | US$ in thousands | 40,725 | 33,542 | 9,212 | -88,143 | -101,869 | -128,288 | -145,626 | -281,040 | -320,154 | -560,237 | -577,282 | -631,503 | -641,114 | -647,194 | -569,017 | -486,606 | -398,890 | -382,829 | -363,607 | -283,974 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $130,659K ÷ ($587,501K + $40,725K)
= 20.80%
The return on total capital for Gogo Inc has exhibited consistency and strength over the past eight quarters. The ratio has ranged from 19.54% to 24.46%, indicating the company's ability to generate profits relative to the total capital invested in the business. The generally stable and favorable trend suggests efficient utilization of capital and effective management of assets to generate returns. The slight fluctuations in the ratio indicate some variability in performance, but the overall trend demonstrates a solid performance in effectively leveraging the company's total capital to generate returns for shareholders.
Peer comparison
Dec 31, 2023