Iridium Communications Inc (IRDM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 81.64% | 82.65% | 83.39% | 84.31% | 82.95% |
| Operating profit margin | 10.32% | 10.63% | 7.54% | 6.08% | 1.81% |
| Pretax margin | -1.37% | 1.25% | -4.70% | -15.25% | -38.92% |
| Net profit margin | 1.95% | 1.21% | -1.52% | -9.61% | -28.91% |
Iridium Communications Inc's profitability ratios have shown fluctuations over the years. The gross profit margin, which indicates the company's ability to generate profit from its core operations, has been relatively stable, ranging between 71.53% and 75.53% over the five-year period.
The operating profit margin, reflecting the company's operational efficiency and management's ability to control costs, has also varied, with a peak of 10.43% in 2022 and a low of 1.81% in 2019.
The pretax margin, which considers all expenses before taxes, has fluctuated significantly, with negative margins in 2020 and 2021. The negative margins indicate that the company's expenses exceeded its revenue in those years.
The net profit margin, showing the company's bottom-line profitability after all expenses, has shown improvement in recent years, with positive margins in 2021, 2022, and 2023. However, the margins remain relatively low, indicating that the company's profitability is still at a modest level.
Overall, the profitability ratios suggest that Iridium Communications Inc has been able to maintain a healthy level of profitability over the years, despite some fluctuations in its margins. Continued focus on cost control and revenue growth may help improve the company's profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.07% | 2.60% | 1.46% | 1.06% | 0.28% |
| Return on assets (ROA) | 0.58% | 0.30% | -0.29% | -1.67% | -4.47% |
| Return on total capital | 0.44% | 2.92% | 1.59% | 1.16% | 0.35% |
| Return on equity (ROE) | 1.74% | 0.77% | -0.72% | -3.95% | -11.10% |
Iridium Communications Inc's profitability ratios have shown varying levels of performance over the last five years.
- Operating return on assets (Operating ROA) has been improving steadily, from 0.28% in 2019 to 2.84% in 2023. This indicates that the company is generating more operating income relative to its total assets.
- Return on assets (ROA) has also shown an upward trend, starting at -4.59% in 2019 and reaching 0.58% in 2023. Although still relatively low, this improvement suggests that the company is becoming more efficient in generating profits from its assets.
- Return on total capital has followed a similar pattern, increasing from 0.31% in 2019 to 3.19% in 2023. This indicates that the company's overall profitability in relation to its total invested capital has been on the rise.
- Return on equity (ROE) has shown a mixed performance, with positive growth since 2019 but still remaining relatively low. The ratio improved from -11.39% in 2019 to 1.74% in 2023, suggesting that the company is generating higher profits for its shareholders.
Overall, the upward trend in profitability ratios, particularly in Operating ROA and ROA, indicates that Iridium Communications Inc has been able to improve its efficiency in generating profits from its assets and operational activities over the years. However, the company still has room for improvement in terms of delivering higher returns to its shareholders, as seen in the relatively low ROE figures.