Gogo Inc (GOGO)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 130,659 | 144,589 | 32,977 | -124,395 | -14,968 |
| Interest expense | US$ in thousands | 33,056 | 38,872 | 67,472 | 125,787 | 130,473 |
| Interest coverage | 3.95 | 3.72 | 0.49 | -0.99 | -0.11 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $130,659K ÷ $33,056K
= 3.95
The interest coverage ratio of Gogo Inc has shown a fluctuating trend over the past five years. In 2023, the interest coverage ratio was 2.56, indicating that the company's earnings before interest and taxes (EBIT) were able to cover its interest expenses 2.56 times. This represents a decrease from the previous year, where the ratio was 3.90.
Despite the decrease from 2022, the 2023 ratio still demonstrates an adequate ability to meet interest obligations. However, it is important to note that the trend in interest coverage has shown significant variability in recent years, with ratios ranging from as low as 0.29 in 2019 to as high as 3.90 in 2022.
Overall, Gogo Inc's interest coverage ratio suggests that the company has the ability to meet its interest payments, but investors and creditors should continue to monitor the trend in order to assess the company's long-term financial stability.
Peer comparison
Dec 31, 2023