Iridium Communications Inc (IRDM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 790,723 | 721,034 | 614,500 | 583,439 | 560,444 |
| Property, plant and equipment | US$ in thousands | 2,195,760 | 2,433,300 | 2,662,340 | 2,917,080 | 3,180,800 |
| Fixed asset turnover | 0.36 | 0.30 | 0.23 | 0.20 | 0.18 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $790,723K ÷ $2,195,760K
= 0.36
Fixed asset turnover is a financial ratio that measures how efficiently a company is generating sales revenue from its fixed assets. Higher values indicate better asset utilization. Looking at the historical data for Iridium Communications Inc, the fixed asset turnover has shown a consistent improvement over the years.
In 2019, the fixed asset turnover was 0.18, and it gradually increased to 0.36 by the end of 2023. This demonstrates that the company has been able to generate more revenue for every dollar invested in fixed assets. The increase in fixed asset turnover indicates an improvement in operational efficiency and asset management by Iridium Communications Inc over the years.
Overall, the trend of increasing fixed asset turnover suggests that the company is effectively utilizing its fixed assets to drive sales and achieve better financial performance.
Peer comparison
Dec 31, 2023