Iridium Communications Inc (IRDM)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 15,415 | 8,722 | -9,319 | -56,054 | -161,999 |
| Total assets | US$ in thousands | 2,661,780 | 2,954,010 | 3,180,800 | 3,360,950 | 3,623,560 |
| ROA | 0.58% | 0.30% | -0.29% | -1.67% | -4.47% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $15,415K ÷ $2,661,780K
= 0.58%
The return on assets (ROA) for Iridium Communications Inc has shown a positive trend over the past five years, increasing from -4.59% in 2019 to 0.58% in 2023. This improvement indicates that the company has become more efficient in generating profits relative to its assets.
In 2021, the ROA turned negative at -0.29%, suggesting a period of decreased profitability relative to its asset base. However, the company managed to rebound in the following years, with significant improvements in 2022 and 2023.
Overall, the positive ROA figures in 2022 and 2023 demonstrate that Iridium Communications Inc has been able to effectively utilize its assets to generate profits, reflecting positively on its operational efficiency and financial performance. It is essential for the company to sustain this upward trend in ROA to ensure continued profitability and value creation for its stakeholders.
Peer comparison
Dec 31, 2023