Gogo Inc (GOGO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 56,565 | 108,079 | 121,923 | 148,891 | 130,998 | 142,341 | 143,017 | 139,305 | 142,326 | 135,990 | 129,515 | 125,884 | 117,074 | 100,465 | 165,921 | 82,164 | 47,548 | 40,857 | -47,732 | 16,703 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 69,324 | 52,724 | 52,011 | 62,439 | 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 |
| Return on total capital | 81.60% | 204.99% | 234.42% | 238.46% | 321.66% | 424.37% | 1,552.51% | — | — | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 past several quarters. The return on total capital was not available for the periods until March 31, 2023. However, starting from June 30, 2023, there has been a notable increase in the return on total capital, with a significant spike to 1,552.51%.
Subsequently, although the return on total capital decreased from the peak in June 2023, it remained relatively high at 424.37% as of September 30, 2023. The trend continued with a further decline to 321.66% by December 31, 2023, suggesting a slight decrease in the company's profitability efficiency.
However, the return on total capital experienced a relatively significant drop to 238.46% by March 31, 2024, indicating a notable decrease in the company's ability to generate returns on its capital investment. The trend continued with a slight decrease to 234.42% by June 30, 2024, followed by another decrease to 204.99% by September 30, 2024.
By the end of December 31, 2024, the return on total capital further dropped to 81.60%, signaling a significant decline in the company's profitability efficiency compared to the previous quarters. Overall, the data suggests that Gogo Inc's return on total capital has been volatile, with fluctuations indicating varying levels of efficiency in utilizing its total capital to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024