Iridium Communications Inc (IRDM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 78.90% | 52.56% | 52.81% | 54.27% | 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% |
| Operating profit margin | 24.12% | 24.07% | 21.39% | 13.80% | 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% |
| Pretax margin | 15.05% | 15.27% | 10.86% | 1.59% | -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% |
| Net profit margin | 13.58% | 14.16% | 11.26% | 3.23% | 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% |
Iridium Communications Inc's profitability ratios have shown variability over the reporting periods. The gross profit margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, has fluctuated from a high of 87.10% in September 2021 to a low of 52.56% in September 2024.
The operating profit margin, reflecting the proportion of revenue that translates to operating income, has also experienced fluctuations. It reached a peak of 24.12% in December 2024 after a significant increase from previous periods.
The pre-tax margin, representing the percentage of revenue that turns into pre-tax profit, demonstrates a turnaround from negative margins in the past to positive margins in recent periods. The margins improved steadily from -41.04% in March 2020 to 15.05% in December 2024.
Lastly, the net profit margin, which indicates the portion of revenue that converts to net income, also displayed significant variations. The margin improved from negative figures to positive values over time, reaching a peak of 14.16% in September 2024.
Overall, Iridium Communications Inc has shown improvements in profitability ratios over the reporting periods, with a progressive increase in operating and net profit margins, reflecting a positive trend in the company's profitability.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.50% | 7.07% | 6.18% | 3.96% | 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% |
| Return on assets (ROA) | 4.22% | 4.16% | 3.25% | 0.92% | 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% |
| Return on total capital | 34.75% | 7.24% | 6.20% | 3.70% | 2.71% | 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% |
| Return on equity (ROE) | 19.56% | 17.24% | 11.23% | 2.96% | 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% |
Iridium Communications Inc has shown a consistent improvement in its profitability ratios over the last few years.
- The Operating Return on Assets (Operating ROA) has steadily increased from 0.70% as of March 31, 2020, to a peak of 6.18% as of June 30, 2024, before slightly declining to 7.50% by December 31, 2024.
- Return on Assets (ROA) had a negative trend initially but turned positive by September 30, 2022, and continued to increase to 4.22% by December 31, 2024.
- Return on Total Capital also exhibited an upward trajectory, reaching its highest point of 34.75% by December 31, 2024, showing strong efficiency in utilizing total capital resources.
- Return on Equity (ROE) had a similar pattern, starting in negative territory and then moving to positive figures, with a significant improvement seen by the end of 2024, standing at 19.56%.
Overall, these profitability ratios indicate that Iridium Communications Inc has been effectively managing its assets, capital, and equity to generate increasing returns for its stakeholders.