Gogo Inc (GOGO)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 587,501 | 690,173 | 694,760 | 827,968 | 1,101,250 |
| Total assets | US$ in thousands | 781,539 | 759,526 | 647,687 | 673,588 | 1,214,700 |
| Debt-to-assets ratio | 0.75 | 0.91 | 1.07 | 1.23 | 0.91 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $587,501K ÷ $781,539K
= 0.75
The debt-to-assets ratio of Gogo Inc has fluctuated over the past five years, indicating varying levels of leverage and financial risk. The ratio decreased from 1.74 in 2020 to 0.91 in 2019, suggesting a reduction in the proportion of assets financed by debt. However, this trend reversed in subsequent years, with the ratio increasing to 1.24 in 2021, 0.92 in 2022, and 0.76 in 2023.
A higher debt-to-assets ratio generally indicates higher financial risk, as it implies that a larger portion of the company's assets are funded through debt. Conversely, a lower ratio suggests a lower level of financial risk and potentially greater financial stability.
The significant fluctuations in Gogo Inc's debt-to-assets ratio over the past five years may indicate shifts in the company's capital structure and financing decisions. It is essential for stakeholders to closely monitor these changes to assess the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023