Iridium Communications Inc (IRDM)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 655,300 | 645,517 | 595,930 | 512,426 | 491,887 |
| Revenue | US$ in thousands | 830,682 | 790,723 | 721,034 | 614,500 | 583,439 |
| Gross profit margin | 78.89% | 81.64% | 82.65% | 83.39% | 84.31% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $655,300K ÷ $830,682K
= 78.89%
Based on the data provided, Iridium Communications Inc's gross profit margin has exhibited a gradual decline over the years. The margin stood at 84.31% as of December 31, 2020, and decreased to 83.39% by the end of 2021. Subsequently, the margin continued to decline to 82.65% in 2022, further dropping to 81.64% in 2023. The most significant decrease was observed by the end of December 31, 2024, with a gross profit margin of 78.89%.
This trend indicates that the company's cost of goods sold has been increasing at a faster pace compared to its revenue, resulting in a reduced percentage of revenue retained as gross profit. The declining gross profit margin may point to operational inefficiencies, pricing pressure, or increased production costs that are eroding the company's profitability at the gross level. It is important for Iridium Communications Inc to closely monitor its cost structure and revenue generation strategies to reverse this downward trend and strengthen its overall financial performance in the future.
Peer comparison
Dec 31, 2024