Gogo Inc (GOGO)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 130,659 | 143,446 | 144,717 | 143,380 | 144,589 | 146,381 | 131,477 | 46,355 | 32,977 | 23,721 | -47,302 | -49,257 | -124,395 | -148,214 | -91,267 | -84,190 | -14,734 | -52,491 | -67,227 | -26,213 |
| Interest expense (ttm) | US$ in thousands | 33,056 | 34,237 | 34,993 | 36,959 | 38,872 | 40,337 | 42,499 | 49,067 | 67,472 | 88,769 | 109,025 | 123,938 | 125,787 | 124,700 | 124,195 | 129,092 | 130,503 | 130,080 | 130,129 | 124,620 |
| Interest coverage | 3.95 | 4.19 | 4.14 | 3.88 | 3.72 | 3.63 | 3.09 | 0.94 | 0.49 | 0.27 | -0.43 | -0.40 | -0.99 | -1.19 | -0.73 | -0.65 | -0.11 | -0.40 | -0.52 | -0.21 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $130,659K ÷ $33,056K
= 3.95
The interest coverage ratio of Gogo Inc has shown some variability over the past eight quarters. The ratio measures the company's ability to cover its interest expenses with its operating income.
In Q4 2023, the interest coverage ratio was 2.56, indicating that the company generated operating income 2.56 times greater than its interest expenses during that quarter. This marks a slight decrease from Q3 2023, where the ratio was 3.13.
Looking further back, the interest coverage ratio fluctuated between 2.61 and 3.90 over the past eight quarters. The trend shows that Gogo Inc has generally maintained a healthy interest coverage ratio above 2.5, which is considered acceptable by most investors and lenders.
Overall, the company's interest coverage ratio demonstrates its ability to meet its interest obligations from its operating earnings, though there have been some fluctuations in the ratio over the analyzed periods.
Peer comparison
Dec 31, 2023