Iridium Communications Inc (IRDM)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 71,870 | 67,877 | 103,456 | 126,592 | 168,770 | 218,762 | 227,197 | 232,015 | 320,913 | 287,004 | 213,408 | 214,835 | 237,178 | 182,702 | 119,115 | 67,289 | 223,561 | 171,629 | 175,846 | 275,659 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 2,002 | 5,986 | 7,481 | 7,548 | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 91,715 | 100,718 | 92,147 | 100,636 | 82,273 | 86,847 | 75,006 | 80,055 | 63,410 | 70,390 | 63,958 | 59,895 | 61,151 | 59,340 | 60,397 | 64,485 | 68,697 | 70,060 | 91,628 | 68,460 |
| 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 |
| 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 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that a company has sufficient liquid assets to cover its short-term obligations.
Iridium Communications Inc's quick ratio has shown a declining trend over the past eight quarters, indicating a decreasing ability to cover its short-term liabilities with its liquid assets. The company's quick ratio decreased from 3.38 in Q1 2022 to 1.37 in Q4 2023.
A quick ratio of 1.37 in Q4 2023 suggests that Iridium Communications Inc had $1.37 in liquid assets for every $1 of its short-term liabilities, which may raise concerns about the company's liquidity position. It is important to monitor this ratio closely to ensure that the company can meet its short-term obligations without facing liquidity challenges.
Peer comparison
Dec 31, 2023