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Gogo (GOGO) Interest Coverage : 1.55 (As of Jun. 2024)


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What is Gogo Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Gogo's Operating Income for the three months ended in Jun. 2024 was $21.7 Mil. Gogo's Interest Expense for the three months ended in Jun. 2024 was $-14.0 Mil. Gogo's interest coverage for the quarter that ended in Jun. 2024 was 1.55. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Gogo's Interest Coverage or its related term are showing as below:

GOGO' s Interest Coverage Range Over the Past 10 Years
Min: 0.64   Med: 1.34   Max: 3.22
Current: 2.02


GOGO's Interest Coverage is ranked worse than
73.78% of 286 companies
in the Telecommunication Services industry
Industry Median: 4.53 vs GOGO: 2.02

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Gogo Interest Coverage Historical Data

The historical data trend for Gogo's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Gogo Interest Coverage Chart

Gogo Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.76 0.64 1.92 3.22 2.15

Gogo Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.33 2.36 1.74 2.44 1.55

Competitive Comparison of Gogo's Interest Coverage

For the Telecom Services subindustry, Gogo's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Gogo's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Gogo's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Gogo's Interest Coverage falls into.



Gogo Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Gogo's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Gogo's Interest Expense was $-57.7 Mil. Its Operating Income was $124.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $660.5 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*124.165/-57.735
=2.15

Gogo's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Gogo's Interest Expense was $-14.0 Mil. Its Operating Income was $21.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $654.5 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*21.681/-13.974
=1.55

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Gogo  (NAS:GOGO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Gogo Interest Coverage Related Terms

Thank you for viewing the detailed overview of Gogo's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Gogo Business Description

Traded in Other Exchanges
Address
105 Edgeview Drive, Suite 300, Broomfield, CO, USA, 80021
Gogo Inc is a broadband connectivity service for the business aviation market. It provides a customizable suite of smart cabin systems for integrated connectivity, inflight entertainment, and voice solutions. Its business segment includes Business Aviation. It generates two types of revenue: service revenue consists of monthly subscription and usage fees paid by aircraft owners and operators for telecommunication, data, and in-flight entertainment services. and equipment revenue consists of proceeds from the sale of ATG and narrowband satellite connectivity equipment and is recognized when control of the equipment is transferred to OEMs and dealers, which generally occurs when the equipment is shipped.
Executives
Charles C Townsend director 1250 N ARLINGTON HEIGHTS RD, STE 500, ITASCA IL 60143
Harris N Williams director 1250 N ARLINGTON HEIGHTS RD, STE 500, ITASCA IL 60143
Karen Jackson officer: SVP, Human Resources 1250 N. ARLINGTON HEIGHTS ROAD, STE 500, ITASCA IL 60143
Crystal L Gordon officer: EVP, Gen Counsel and Secy 945 BUNKER HILL, SUITE 650, HOUSTON TX 77024
Michael Abad-santos director C/O GOGO INC., 105 EDGEVIEW DR., SUITE 300, BROOMFIELD CO 80021
Leigh Goldfine officer: VP, Controller and CAO C/O GOGO INC., 105 EDGEVIEW DR., SUITE 300, BROOMFIELD CO 80021
Jessica Betjemann officer: SVP, Finance, Treasurer & CAO C/O GOGO INC., 111 N. CANAL ST, SUITE 1400, CHICAGO IL 60606
Marguerite M Elias officer: Exec VP, Gen Counsel and Sec 1250 N ARLINGTON HEIGHTS RD, STE 500, ITASCA IL 60143
Michael P. Bayer officer: SVP, Controller & CAO 1250 N. ARLINGTON HEIGHTS ROAD, STE 500, ITASCA IL 60143
Robert L Crandall director C/O AMR CORP/AMERICAN AIRLINES INC, 5215 NORTH O'CONNOR BLVD, IRVING TX 75039
Silver (xii) Holdings, Llc director, 10 percent owner 300 NORTH LASALLE STREET, SUITE 5600, CHICAGO IL 60654
Mark M. Anderson director 300 NORTH LASALLE STREET, SUITE 5600, CHICAGO IL 60654
Mudrick Distressed Opportunity Specialty Fund, L.p. 10 percent owner 527 MADISON AVENUE, 6TH FLOOR, NEW YORK NY 10022
Mudrick Distressed Opportunity Fund Global, Lp 10 percent owner 527 MADISON AVENUE, 6TH FLOOR, NEW YORK NY 10022
Mudrick Gp, Llc 10 percent owner 527 MADISON AVENUE, 6TH FLOOR, NEW YORK NY 10022