Iridium Communications Inc (IRDM)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 81,628 | 76,679 | 46,314 | 35,483 | 10,120 |
| Total assets | US$ in thousands | 2,661,780 | 2,954,010 | 3,180,800 | 3,360,950 | 3,623,560 |
| Operating ROA | 3.07% | 2.60% | 1.46% | 1.06% | 0.28% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $81,628K ÷ $2,661,780K
= 3.07%
Iridium Communications Inc's operating return on assets (operating ROA) has shown a consistent upward trend over the past five years. The ratio has increased from 0.28% in 2019 to 2.84% in 2023, indicating a positive performance in utilizing its assets to generate operating income.
This improvement suggests that the company has become more efficient in generating profits from its assets over the years. A higher operating ROA indicates that the company is effectively using its assets to generate operating income, which is a positive sign of operational efficiency and profitability.
Overall, the increasing trend in operating ROA reflects positively on Iridium Communications Inc's ability to manage and utilize its assets effectively to generate operating income, which can be interpreted as a sign of financial strength and efficiency in its operations.
Peer comparison
Dec 31, 2023