Iridium Communications Inc (IRDM)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 342,935 | 293,922 | 320,741 | 396,888 |
| Total current liabilities | US$ in thousands | 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 | 113,751 | 323,068 | 284,895 | 376,442 |
| Current ratio | 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 | 3.01 | 0.91 | 1.13 | 1.05 |
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 shown a declining trend over the past few quarters. In Q4 2023, the company's current ratio stands at 2.06, which is lower compared to the previous quarter's ratio of 2.13. This indicates that the company's short-term liquidity position has weakened slightly.
Looking further back, the current ratio was at its highest in Q1 2022 at 3.67 and has been gradually decreasing since then. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A ratio above 1.0 indicates that the company has more current assets than current liabilities.
While Iridium Communications Inc's current ratio is generally above 2.0, which is considered a healthy level, the decreasing trend could signal potential issues with managing short-term obligations. It is important for the company to continue monitoring and managing its current assets and liabilities to ensure a strong liquidity position going forward.
Peer comparison
Dec 31, 2023