Iridium Communications Inc (IRDM)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 790,723 | 765,535 | 769,021 | 754,775 | 721,034 | 694,988 | 672,226 | 644,376 | 614,500 | 562,328 | 564,734 | 567,318 | 583,439 | 575,806 | 569,119 | 572,046 | 560,444 | 553,735 | 545,714 | 537,545 |
| Property, plant and equipment | US$ in thousands | 2,195,760 | 2,229,190 | 2,290,990 | 2,383,570 | 2,433,300 | 2,480,300 | 2,541,160 | 2,595,670 | 2,662,340 | 2,720,280 | 2,785,810 | 2,851,140 | 2,917,080 | 2,981,370 | 3,046,060 | 3,110,870 | 3,180,800 | 3,238,980 | 3,303,700 | 3,336,960 |
| Fixed asset turnover | 0.36 | 0.34 | 0.34 | 0.32 | 0.30 | 0.28 | 0.26 | 0.25 | 0.23 | 0.21 | 0.20 | 0.20 | 0.20 | 0.19 | 0.19 | 0.18 | 0.18 | 0.17 | 0.17 | 0.16 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $790,723K ÷ $2,195,760K
= 0.36
The fixed asset turnover ratio for Iridium Communications Inc has been gradually increasing over the past eight quarters, indicating an improvement in the company's efficiency in generating revenue from its fixed assets. The ratio has ranged from 0.25 to 0.36 during this period, with the latest value being 0.36 in Q4 2023. This suggests that, on average, the company generated $0.36 in revenue for every $1 invested in fixed assets during the most recent quarter.
The increasing trend in fixed asset turnover indicates that Iridium Communications Inc is utilizing its fixed assets more effectively to drive sales and generate revenue. This improvement may be attributed to better operational efficiency, asset management, and possibly higher sales volume.
It is important for the company to continue monitoring and maintaining this positive trend in fixed asset turnover to ensure sustainable growth and profitability. This ratio provides valuable insights into the company's operational efficiency and asset utilization, highlighting its ability to effectively leverage fixed assets to drive business performance.
Peer comparison
Dec 31, 2023