Iridium Communications Inc (IRDM)

Liquidity ratios

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
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
Quick ratio 1.24 1.42 1.57 1.95 1.77 2.41 2.85 3.26 3.53 3.85 3.26 3.20 2.71 2.40 1.76 1.48 2.57 0.75 0.94 0.91
Cash ratio 0.55 0.57 0.83 1.09 1.19 1.72 2.14 2.42 2.95 3.09 2.52 2.52 2.16 1.81 1.17 0.75 1.97 0.53 0.62 0.73

Iridium Communications Inc's liquidity ratios paint a picture of a company with generally strong liquidity positions throughout the quarters provided. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has shown slight fluctuations but has generally remained above 2. A value above 1 indicates that the company has more current assets than current liabilities, which is considered favorable.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also demonstrates a healthy liquidity position for Iridium Communications Inc. The quick ratio has consistently been above 1, indicating that the company can meet its short-term obligations without relying on the sale of inventory.

The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, shows a decreasing trend over the quarters provided but has remained above 0.5. This suggests that Iridium Communications Inc may have a lower level of immediate liquidity to cover its current liabilities compared to its overall current assets, but still maintains a reasonable cash cushion.

Overall, based on the liquidity ratios analyzed, Iridium Communications Inc appears to have maintained sound liquidity positions, with sufficient current assets to cover its short-term obligations across the quarters provided.

Additional liquidity measure

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
Cash conversion cycle days 199.35 188.23 120.83 84.88 95.34 79.38 86.03 90.81 83.61 90.49 111.22 117.12 110.38 143.14 152.20 154.66 171.64 143.29 153.67 110.06

The cash conversion cycle of Iridium Communications Inc has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle increased to 143.61 days, indicating a longer time taken to convert its investments in inventory and accounts receivable into cash. This was a notable increase from the previous quarter's 137.92 days.

Looking back over the last two years, the trend has been somewhat volatile but generally showed an increasing cycle length. Q2 2023 had the shortest cycle at 93.47 days, but this was followed by a significant jump in Q3 2023. Comparing to the same quarter in the prior year, Q4 2023 showed a considerable deterioration in efficiency as the cycle exceeded the corresponding period in 2022 (75.04 days).

Overall, Iridium's cash conversion cycle has shown variability, likely indicating fluctuations in the company's operating efficiency and liquidity management. It is essential for Iridium to focus on optimizing this cycle to ensure a healthier cash flow and working capital management in the future.