Iridium Communications Inc (IRDM)
Profitability ratios
Return on sales
| 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 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% |
| Operating profit margin | 10.32% | 7.07% | 5.70% | 10.68% | 10.63% | 9.87% | 9.78% | 8.77% | 7.54% | 7.24% | 6.81% | 5.76% | 6.08% | 5.28% | 4.51% | 4.12% | 1.81% | 1.80% | 1.46% | 3.83% |
| Pretax margin | -1.37% | -5.33% | -4.30% | 1.15% | 1.25% | 0.73% | 0.21% | -1.64% | -4.71% | -7.36% | -8.41% | -10.29% | -15.26% | -37.02% | -39.69% | -41.04% | -38.92% | -18.23% | -17.05% | -11.85% |
| Net profit margin | 1.95% | -3.06% | -2.55% | 2.08% | 1.21% | 0.52% | -0.09% | -0.20% | -1.52% | -2.02% | -2.35% | -5.21% | -9.61% | -27.09% | -29.87% | -30.71% | -28.91% | -11.15% | -10.37% | -7.98% |
The gross profit margin for Iridium Communications Inc has been relatively stable around the 70-75% range over the past eight quarters, indicating the company has been able to effectively control its cost of goods sold relative to its revenue.
The operating profit margin has shown some fluctuations, with Q4 2023 reporting the highest at 9.55% and Q1 2023 at 10.43%. This metric reflects the company's ability to generate profits from its core operations after accounting for operating expenses.
The pretax margin has been inconsistent, with negative margins in Q4 2023 and Q3 2023, indicating that the company's pre-tax earnings were insufficient to cover its pre-tax expenses during those periods.
The net profit margin, which reflects the company's bottom line profitability after all expenses have been accounted for, has shown similar inconsistency. Q4 2023 had the highest net profit margin at 1.95%, while Q3 2023 reported a negative margin of -2.96%.
Overall, while the gross profit margin suggests efficient cost management, the fluctuations in operating, pretax, and net profit margins indicate some variability in the company's ability to generate consistent profits and control expenses. Analyzing the reasons behind these fluctuations in profitability ratios would provide deeper insights into Iridium Communications Inc's financial performance.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.07% | 2.00% | 1.58% | 2.81% | 2.60% | 2.24% | 2.14% | 1.84% | 1.46% | 1.27% | 1.20% | 1.00% | 1.06% | 0.90% | 0.76% | 0.70% | 0.28% | 0.26% | 0.20% | 0.51% |
| Return on assets (ROA) | 0.58% | -0.87% | -0.71% | 0.55% | 0.30% | 0.12% | -0.02% | -0.04% | -0.29% | -0.35% | -0.41% | -0.90% | -1.67% | -4.63% | -5.04% | -5.18% | -4.47% | -1.61% | -1.44% | -1.06% |
| Return on total capital | 7.18% | 2.26% | 1.75% | 3.12% | 2.92% | 2.53% | 2.40% | 2.02% | 1.59% | 1.38% | 1.30% | 1.09% | 1.16% | 1.01% | 0.85% | 0.78% | 0.35% | 0.31% | 0.24% | 0.62% |
| Return on equity (ROE) | 1.74% | -2.53% | -1.96% | 1.44% | 0.77% | 0.32% | -0.05% | -0.11% | -0.72% | -0.86% | -1.01% | -2.17% | -3.95% | -11.02% | -12.06% | -12.43% | -11.10% | -3.96% | -3.60% | -2.70% |
Iridium Communications Inc's profitability ratios display fluctuations over the quarters analyzed. The Operating return on assets (Operating ROA) has ranged from 1.52% to 2.84%, indicating the company's ability to generate profits from its assets while excluding non-operating expenses.
However, when considering the Return on assets (ROA), which includes all expenses, the figures vary from -0.87% to 0.58%. This metric suggests that the company had periods of generating overall profits and incurring losses during the quarters under review.
The Return on total capital ranged from 1.64% to 3.19%, reflecting the efficiency of the company in generating profits relative to its total capital employed.
Similarly, the Return on equity (ROE) varied from -2.53% to 1.74%, showing how well the company is utilizing shareholder equity to generate profits.
Overall, analysis of these profitability ratios indicates that while Iridium Communications Inc has shown profitability in some quarters, there are also periods where the company faced challenges in generating sustainable profits and returns for its shareholders.