Iridium Communications Inc (IRDM)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 830,682 | 790,723 | 721,034 | 614,500 | 583,439 |
| Property, plant and equipment | US$ in thousands | 2,080,540 | 2,195,760 | 2,433,300 | 2,662,340 | 2,917,080 |
| Fixed asset turnover | 0.40 | 0.36 | 0.30 | 0.23 | 0.20 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $830,682K ÷ $2,080,540K
= 0.40
The fixed asset turnover ratio for Iridium Communications Inc has shown a steady increase over the past five years, from 0.20 in December 31, 2020, to 0.40 in December 31, 2024. This indicates that the company is generating more revenue from its fixed assets over time, reflecting efficient utilization of its long-term assets to generate sales. The upward trend suggests that Iridium Communications Inc has been able to improve its operational efficiency and effectiveness in utilizing its fixed assets to drive revenue growth. A higher fixed asset turnover ratio generally signifies better asset utilization and operational performance, which is a positive indicator for the company's overall financial health and profitability.
Peer comparison
Dec 31, 2024