Iridium Communications Inc (IRDM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 112,776 | 15,415 | 8,722 | -9,319 | -56,054 |
| Total assets | US$ in thousands | 2,671,470 | 2,661,780 | 2,954,010 | 3,180,800 | 3,360,950 |
| ROA | 4.22% | 0.58% | 0.30% | -0.29% | -1.67% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $112,776K ÷ $2,671,470K
= 4.22%
The return on assets (ROA) provides insight into how efficiently a company is utilizing its assets to generate profits. Analyzing the ROA trend of Iridium Communications Inc over the years, we observe the following:
1. In December 31, 2020, the ROA was -1.67%, indicating that for every dollar of assets, the company incurred a loss of 1.67 cents.
2. Over the next year, by December 31, 2021, the ROA improved slightly to -0.29%, but still remained negative.
3. By December 31, 2022, the ROA turned positive at 0.30%, suggesting that the company started generating a modest profit from its assets.
4. The positive trend continued in December 31, 2023, with the ROA increasing to 0.58%, indicating improved asset efficiency.
5. Notably, by December 31, 2024, the ROA surged to 4.22%, signifying a significant enhancement in asset utilization and profitability for Iridium Communications Inc.
Overall, the positive trajectory of the ROA from negative values to a substantial positive figure by 2024 reflects the company's efforts in enhancing operational efficiency and maximizing returns from its asset base.
Peer comparison
Dec 31, 2024