Gogo Inc (GOGO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.75 | 0.77 | 0.79 | 0.91 | 0.91 | 0.95 | 0.96 | 1.01 | 1.07 | 1.57 | 1.98 | 1.69 | 1.23 | 1.14 | 1.05 | 0.94 | 0.91 | 0.86 | 0.85 | 0.79 |
| 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 |
| Debt-to-equity ratio | 14.43 | 17.55 | 64.05 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | 19.19 | 22.88 | 80.93 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios for Gogo Inc indicate the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has fluctuated over the quarters, ranging from 0.76 to 1.17, with a downward trend in Q4 2023. This ratio indicates that 76% to 117% of the company's assets are financed by debt.
The debt-to-capital ratio has also shown variation over the quarters, declining from 0.94 to 1.54. This ratio suggests that 94% to 154% of the company's capital structure is made up of debt.
The debt-to-equity ratio shows substantial variation, with values ranging from 14.60 to 64.84. A higher ratio implies higher financial risk, as seen in Q2 2023.
The financial leverage ratio has likewise shown significant fluctuations, ranging from 19.19 to 80.93. This ratio signifies the degree to which the company relies on debt to finance its assets, with a higher ratio indicating higher financial risk.
Overall, the solvency ratios of Gogo Inc indicate a mix of debt and equity financing, with varying levels of financial risk exposure over the analyzed quarters. It is important for the company to manage its debt levels effectively to ensure long-term financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest payment obligations. A higher interest coverage ratio suggests that the company is more capable of servicing its debt and has a lower risk of default.
Analyzing Gogo Inc's interest coverage ratio over the past eight quarters shows a generally stable trend, with some fluctuations. In Q4 2023, the interest coverage ratio decreased to 2.56 from its peak of 3.90 in Q4 2022. Despite this decrease, the ratio still indicates that Gogo Inc is generating enough operating income to cover its interest expenses.
The fluctuation in the interest coverage ratio may be influenced by changes in the company's operating income or interest expenses. It is essential for investors and creditors to closely monitor the trend in interest coverage ratio to assess the company's overall financial health and its ability to handle debt obligations. Overall, Gogo Inc's interest coverage ratio remains at levels that suggest a reasonable ability to meet its interest payment obligations.