Iridium Communications Inc (IRDM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 271,084 | 306,204 | 424,410 | 347,821 | 342,935 |
| Total current liabilities | US$ in thousands | 131,554 | 141,577 | 108,836 | 113,072 | 113,751 |
| Current ratio | 2.06 | 2.16 | 3.90 | 3.08 | 3.01 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $271,084K ÷ $131,554K
= 2.06
The current ratio of Iridium Communications Inc has displayed a fluctuating trend over the past five years, ranging from 2.06 in 2023 to 3.90 in 2021. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive indicator of short-term liquidity.
In 2023, the current ratio decreased from the previous year to 2.06, which indicates a slight decline in the company's ability to cover its short-term liabilities with its current assets. It is important to note that though the current ratio decreased, it still remains above the ideal threshold of 1, suggesting that Iridium Communications Inc is in a relatively healthy position in terms of liquidity.
Comparing 2023 to 2019, there has been a decrease in the current ratio from 3.01 to 2.06. This decline suggests that the company's ability to meet its short-term obligations with its current assets has weakened over the past five years.
Overall, while the current ratio has experienced fluctuations, it is still at a level that indicates the company generally has sufficient current assets to cover its current liabilities. However, further monitoring of this trend is recommended to ensure that the company's liquidity position remains stable in the future.
Peer comparison
Dec 31, 2023