Iridium Communications Inc (IRDM)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 430,219 | 430,219 | 434,933 | 429,364 | 408,204 | 578,533 | 562,014 | 538,856 | 512,426 | 489,804 | 480,248 | 468,496 | 495,614 | 487,981 | 471,126 | 467,804 | 418,217 | 411,508 | 404,114 | 403,249 |
| Revenue (ttm) | US$ in thousands | 790,723 | 765,535 | 769,021 | 754,775 | 721,034 | 694,988 | 672,226 | 644,376 | 614,500 | 562,328 | 564,734 | 567,318 | 583,439 | 575,806 | 569,119 | 572,046 | 560,444 | 553,735 | 545,714 | 537,545 |
| Gross profit margin | 54.41% | 56.20% | 56.56% | 56.89% | 56.61% | 83.24% | 83.60% | 83.62% | 83.39% | 87.10% | 85.04% | 82.58% | 84.95% | 84.75% | 82.78% | 81.78% | 74.62% | 74.31% | 74.05% | 75.02% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $430,219K ÷ $790,723K
= 54.41%
The gross profit margin of Iridium Communications Inc has shown a downward trend over the past few quarters, declining from 72.10% in Q4 2022 to 71.53% in Q4 2023. The company's gross profit margin remained relatively stable in the range of 71% to 73% throughout the quarters in 2022 and 2023.
A gross profit margin above 70% is generally considered healthy, indicating that the company is able to effectively control its costs related to production and generate profit from its core business activities. However, the slight decline in the gross profit margin may signal increasing costs or pricing pressures that could potentially impact the company's profitability in the future.
It would be advisable for Iridium Communications Inc to closely monitor its cost structure and pricing strategies to ensure that its gross profit margin remains at a satisfactory level to support its overall financial performance and sustainability.
Peer comparison
Dec 31, 2023