Iridium Communications Inc (IRDM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 71,870 | 168,770 | 320,913 | 237,178 | 223,561 |
| Short-term investments | US$ in thousands | — | — | — | 7,548 | — |
| Total current liabilities | US$ in thousands | 131,554 | 141,577 | 108,836 | 113,072 | 113,751 |
| Cash ratio | 0.55 | 1.19 | 2.95 | 2.16 | 1.97 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($71,870K
+ $—K)
÷ $131,554K
= 0.55
The cash ratio of Iridium Communications Inc has been showing a declining trend over the past five years. The ratio decreased from 2.06 in 2019 to 0.67 in 2023. This indicates that the company's liquidity position has weakened over time, as it now has a lower ability to cover its short-term liabilities with its cash and cash equivalents. A cash ratio of 0.67 means that for every dollar of current liabilities, the company has $0.67 in cash and cash equivalents available. This may suggest that Iridium Communications Inc could potentially face challenges in meeting its immediate financial obligations using its current cash reserves alone. Management should monitor this trend closely and consider strategies to improve the company's liquidity position.
Peer comparison
Dec 31, 2023