Iridium Communications Inc (IRDM)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 292,730 | 354,869 | 264,416 | 376,792 | 271,084 | 252,931 | 268,682 | 278,725 | 306,204 | 358,226 | 342,823 | 351,423 | 424,410 | 392,570 | 321,782 | 322,313 | 347,821 | 286,539 | 229,309 | 180,262 |
| Total current liabilities | US$ in thousands | 169,214 | 135,314 | 117,506 | 113,001 | 131,554 | 119,003 | 124,241 | 116,321 | 141,577 | 126,836 | 105,990 | 95,686 | 108,836 | 93,464 | 86,914 | 88,317 | 113,072 | 100,671 | 101,942 | 89,327 |
| Current ratio | 1.73 | 2.62 | 2.25 | 3.33 | 2.06 | 2.13 | 2.16 | 2.40 | 2.16 | 2.82 | 3.23 | 3.67 | 3.90 | 4.20 | 3.70 | 3.65 | 3.08 | 2.85 | 2.25 | 2.02 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $292,730K ÷ $169,214K
= 1.73
The current ratio of Iridium Communications Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, started at 2.02 on March 31, 2020, and increased steadily to reach a peak of 4.20 on September 30, 2021. However, from that point onwards, the current ratio began to decline, dropping to 1.73 on December 31, 2024.
The trend indicates that initially, the company had a healthy level of current assets to cover its short-term liabilities, suggesting a strong liquidity position. The peak in September 2021 indicates a period of robust liquidity where the company had a substantial cushion of current assets.
However, the subsequent decline in the current ratio may raise concerns about the company's ability to meet its short-term obligations as effectively. A lower current ratio could signal potential liquidity challenges or inefficiencies in managing current assets and liabilities. It is important for stakeholders to monitor this ratio closely to ensure the company maintains a healthy balance between current assets and current liabilities.
Peer comparison
Dec 31, 2024