Iridium Communications Inc (IRDM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 93,526 | 71,870 | 168,770 | 320,913 | 237,178 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 98,803 | 91,715 | 82,273 | 63,410 | 61,151 |
| Total current liabilities | US$ in thousands | 169,214 | 131,554 | 141,577 | 108,836 | 113,072 |
| Quick ratio | 1.14 | 1.24 | 1.77 | 3.53 | 2.64 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($93,526K
+ $—K
+ $98,803K)
÷ $169,214K
= 1.14
The quick ratio of Iridium Communications Inc has shown varying trends over the years. As of December 31, 2020, the quick ratio stood at 2.64, indicating a strong ability to cover short-term obligations with liquid assets. The ratio further improved by December 31, 2021, reaching 3.53, suggesting an even healthier liquidity position.
However, there was a decline in the quick ratio by December 31, 2022, where it dropped to 1.77. This may indicate a relative decrease in the company's ability to meet short-term liabilities with its most liquid assets. The trend continued in the following years, with the quick ratio falling to 1.24 by December 31, 2023, and further dropping to 1.14 by December 31, 2024.
Overall, the downward trend in the quick ratio from 2022 to 2024 may raise concerns about Iridium Communications Inc's liquidity position and its ability to meet short-term obligations efficiently. It would be important for stakeholders to closely monitor the company's liquidity management practices and assess any potential impact on its financial stability.
Peer comparison
Dec 31, 2024