Gogo Inc (GOGO)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 40,725 | -101,869 | -320,154 | -641,114 | -398,890 |
| Debt-to-capital ratio | 0.94 | 1.17 | 1.85 | 4.43 | 1.57 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $587,501K ÷ ($587,501K + $40,725K)
= 0.94
The debt-to-capital ratio of Gogo Inc has shown a fluctuating trend over the past five years. The ratio stood at 1.57 in 2019, then increased to 2.21 in 2020, indicating a significant rise in debt relative to total capital. However, in the subsequent years, the ratio decreased to 1.66 in 2021, further dropping to 1.17 in 2022, and finally reaching 0.94 in 2023. This downward trend in the debt-to-capital ratio signifies a decreasing reliance on debt financing in relation to total capital over the years, which may indicate a strengthening financial position and reduced financial risk for the company.
Peer comparison
Dec 31, 2023