Iridium Communications Inc (IRDM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 93,526 | 71,870 | 168,770 | 320,913 | 237,178 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 169,214 | 131,554 | 141,577 | 108,836 | 113,072 |
| Cash ratio | 0.55 | 0.55 | 1.19 | 2.95 | 2.10 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($93,526K
+ $—K)
÷ $169,214K
= 0.55
The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities using its cash and cash equivalents.
Iridium Communications Inc's cash ratio has fluctuated over the years from 2.10 in December 2020 to 0.55 in December 2024. A higher cash ratio indicates a better ability to pay off short-term liabilities with cash on hand.
In December 2020, the cash ratio was strong at 2.10, suggesting that Iridium had a comfortable cash position to cover immediate obligations. However, there was a significant decline in the cash ratio to 0.55 by December 2023 and maintained at the same level in December 2024.
A cash ratio of 0.55 indicates that Iridium may have limited liquid assets compared to its short-term liabilities, which could potentially pose challenges in meeting its obligations without relying on other sources of liquidity. This trend suggests a decrease in the company's ability to quickly cover its short-term financial obligations solely through its cash and cash equivalents.
Overall, Iridium Communications Inc's cash ratio has shown a decreasing trend, which may raise concerns regarding its liquidity position and the need to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024