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Gogo (GOGO) Financial Strength : 3 (As of Mar. 2025)


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What is Gogo Financial Strength?

Gogo has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Gogo Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Gogo's Interest Coverage for the quarter that ended in Mar. 2025 was 1.89. Gogo's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.99. As of today, Gogo's Altman Z-Score is 0.49.


Competitive Comparison of Gogo's Financial Strength

For the Telecom Services subindustry, Gogo's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Gogo's Financial Strength falls into.


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Gogo Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Gogo's Interest Expense for the months ended in Mar. 2025 was $-18.6 Mil. Its Operating Income for the months ended in Mar. 2025 was $35.2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $897.3 Mil.

Gogo's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*35.187/-18.649
=1.89

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Gogo Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

2. Debt to revenue ratio. The lower, the better.

Gogo's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(15.142 + 897.257) / 921.228
=0.99

3. Altman Z-Score.

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.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Gogo has a Z-score of 0.49, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.49 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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  (NAS:GOGO) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Gogo has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Gogo Financial Strength Related Terms

Thank you for viewing the detailed overview of Gogo's Financial Strength 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 Gogo BA and Satcom Direct. 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
Silver (equity) Holdings, Lp 10 percent owner 300 NORTH LASALLE STREET, SUITE 5600, CHICAGO IL 60654
Robert L Crandall director C/O AMR CORP/AMERICAN AIRLINES INC, 5215 NORTH O'CONNOR BLVD, IRVING TX 75039
Charles C Townsend director 1250 N ARLINGTON HEIGHTS RD, STE 500, ITASCA IL 60143
Oakleigh Thorne director, 10 percent owner
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
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