Gogo Inc (GOGO)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | 17.73 | 15.38 | 15.43 | 12.96 | 19.19 | 22.88 | 80.93 | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Gogo Inc, the solvency ratios indicate a strong financial position in terms of debt management.
1. Debt-to-assets ratio: The company has consistently maintained a debt-to-assets ratio of 0.00 across all the reported periods. This suggests that Gogo has been able to finance its assets without relying heavily on debt, indicating a low risk of insolvency due to debt obligations.
2. Debt-to-capital ratio: The data shows that Gogo did not have a debt-to-capital ratio reported until June 30, 2023, where it stood at 0.00 and remained constant through the subsequent periods. A debt-to-capital ratio of 0.00 indicates that the company's capital structure is not reliant on debt, which is a positive sign for long-term solvency.
3. Debt-to-equity ratio: Similar to the debt-to-capital ratio, the debt-to-equity ratio was not reported until June 30, 2023, and remained at 0.00 thereafter. A debt-to-equity ratio of 0.00 reflects a balanced capital structure with no significant reliance on debt, further strengthening Gogo's solvency.
4. Financial leverage ratio: The financial leverage ratio, which started being reported from June 30, 2023, decreased from 80.93 in June 30, 2023, to 17.73 in December 31, 2024. This indicates a declining trend in the company's reliance on debt to finance its operations, which is favorable for its long-term financial health and stability.
In conclusion, the solvency ratios of Gogo Inc demonstrate a conservative approach to debt management and a healthy balance between debt and equity financing, portraying a solid foundation for the company's financial stability and ability to meet its long-term obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.07 | 2.23 | 2.60 | 3.66 | 3.70 | 4.16 | 3.87 | 3.61 | 3.59 | 3.31 | 3.21 | 2.73 | 1.84 | 1.18 | 1.58 | 0.69 | 0.39 | 0.34 | -0.40 | 0.13 |
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. For Gogo Inc, we observe the following trend in interest coverage ratio over the reported periods:
- The ratio started at a concerning level of 0.13 on March 31, 2020, indicating the company's earnings were only sufficient to cover 13% of its interest expenses.
- The ratio then deteriorated significantly to -0.40 on June 30, 2020, indicating that the company's earnings were insufficient to cover its interest expenses.
- However, there was a gradual improvement in the ratio over the subsequent quarters, reaching 3.87 on June 30, 2023, indicating that the company's earnings could cover nearly 4 times its interest expenses.
- The ratio slightly decreased to 3.70 on December 31, 2023, but it remained at a healthy level.
- The ratio continued to fluctuate in the following periods but generally stayed above 2, signaling the company's improved ability to meet its interest obligations.
Overall, the trend shows an initial struggle to cover interest expenses, followed by a significant improvement in interest coverage, indicating that Gogo Inc's financial position in terms of its ability to pay interest has strengthened over the reported period. However, it is essential for the company to maintain a sustainable interest coverage ratio to ensure financial stability and meet its debt obligations effectively.