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Gogo (GOGO) Altman Z-Score : 0.09 (As of Oct. 31, 2024)


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What is Gogo Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 0.11 is in distress zone. This implies bankruptcy possibility in the next two years.

Gogo has a Altman Z-Score of 0.09, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Gogo's Altman Z-Score or its related term are showing as below:

GOGO' s Altman Z-Score Range Over the Past 10 Years
Min: -4.97   Med: -0.07   Max: 1.03
Current: 0.11

During the past 13 years, Gogo's highest Altman Z-Score was 1.03. The lowest was -4.97. And the median was -0.07.


Gogo Altman Z-Score Historical Data

The historical data trend for Gogo's Altman Z-Score 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.

* Premium members only.

Gogo Altman Z-Score Chart

Gogo Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.67 -2.13 -1.41 0.37 0.42

Gogo Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Altman Z-Score 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 1.03 0.61 0.42 0.43 0.40

Competitive Comparison of Gogo's Altman Z-Score

For the Telecom Services subindustry, Gogo's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Gogo's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Gogo's Altman Z-Score falls into.



Gogo Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Gogo's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.3209+1.4*-1.4733+3.3*0.1815+0.6*1.1077+1.0*0.501
=0.09

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2024:
Total Assets was $802.7 Mil.
Total Current Assets was $344.9 Mil.
Total Current Liabilities was $87.4 Mil.
Retained Earnings was $-1,182.6 Mil.
Pre-Tax Income was 0.971 + 41.411 + 19.103 + 27.641 = $89.1 Mil.
Interest Expense was -13.974 + -14.221 + -14.3 + -14.095 = $-56.6 Mil.
Revenue was 102.059 + 104.322 + 97.81 + 97.949 = $402.1 Mil.
Market Cap (Today) was $831.5 Mil.
Total Liabilities was $750.7 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(344.937 - 87.365)/802.677
=0.3209

X2=Retained Earnings/Total Assets
=-1182.562/802.677
=-1.4733

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(89.126 - -56.59)/802.677
=0.1815

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=831.533/750.666
=1.1077

X5=Revenue/Total Assets
=402.14/802.677
=0.501

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Gogo has a Altman Z-Score of 0.09 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Gogo  (NAS:GOGO) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Gogo Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Gogo's Altman Z-Score 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