Iridium Communications Inc (IRDM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 71,870 | 168,770 | 320,913 | 237,178 | 223,561 |
| Short-term investments | US$ in thousands | — | — | — | 7,548 | — |
| Receivables | US$ in thousands | 91,715 | 82,273 | 63,410 | 61,151 | 68,697 |
| Total current liabilities | US$ in thousands | 131,554 | 141,577 | 108,836 | 113,072 | 113,751 |
| Quick ratio | 1.24 | 1.77 | 3.53 | 2.71 | 2.57 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($71,870K
+ $—K
+ $91,715K)
÷ $131,554K
= 1.24
The quick ratio of Iridium Communications Inc has shown a decreasing trend over the past five years. In 2023, the quick ratio stands at 1.37, indicating a decline from the previous year's ratio of 1.88. The ratio has progressively decreased from 3.63 in 2021 to 2.79 in 2020 and 2.66 in 2019.
A quick ratio above 1 suggests that the company has sufficient liquid assets to cover its current liabilities. Although the ratio has declined in recent years, it still indicates that Iridium Communications Inc has a strong ability to meet its short-term obligations using its quick assets. It is important for the company to closely monitor this trend to ensure that liquidity remains at a healthy level to support its operations and financial health.
Peer comparison
Dec 31, 2023