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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:
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.
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.
Gogo Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Altman Z-Score | Get a 7-Day Free Trial | -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 | 1.03 | 0.61 | 0.42 | 0.43 | 0.40 |
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.
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.
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.
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.
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 |
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