Gogo Inc (GOGO)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.94 | 0.95 | 0.98 | 1.15 | 1.17 | 1.23 | 1.27 | 1.68 | 1.85 | 5.13 | 5.82 | 2.19 | 4.43 | 2.35 | 2.04 | 1.76 | 1.57 | 1.54 | 1.50 | 1.38 |
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 for Gogo Inc has shown a fluctuating trend over the past eight quarters. The ratio has gradually increased from 0.94 in Q4 2022 to 1.54 in Q1 2022, indicating a rising reliance on debt to finance its operations and investments relative to its total capital structure. This suggests a potentially higher financial risk for the company as a higher debt-to-capital ratio typically indicates increased leverage and financial obligations that need to be met.
It is noteworthy that the ratio peaked at 1.54 in Q1 2022, signaling a significant portion of the company's capital structure being funded by debt during that period. However, there was a slight decrease in the ratio in subsequent quarters, reaching its lowest point at 0.94 in Q4 2023, which may imply a reduction in the company's debt relative to its total capital.
Overall, the fluctuating nature of Gogo Inc's debt-to-capital ratio in recent quarters suggests varying levels of financial leverage and risk exposure, highlighting the importance of closely monitoring the company's debt management strategies and financial health.
Peer comparison
Dec 31, 2023