Iridium Communications Inc (IRDM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 576,637 | 888,099 | 1,128,560 | 1,287,950 | 1,419,440 |
| ROE | 19.56% | 1.74% | 0.77% | -0.72% | -3.95% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $112,776K ÷ $576,637K
= 19.56%
Iridium Communications Inc's return on equity (ROE) has shown a fluctuating trend over the years, as per the provided data.
- As of December 31, 2020, the ROE was negative at -3.95%, indicating that the company's net income was insufficient to generate a positive return for its shareholders' equity.
- By December 31, 2021, the ROE improved slightly to -0.72%, but it still remained in negative territory, suggesting the company continued to face challenges in utilizing its equity efficiently.
- In the following year, by December 31, 2022, the ROE turned positive at 0.77%, reflecting a modest improvement in the company's ability to generate profits relative to its equity base.
- The trend continued to improve as of December 31, 2023, with the ROE increasing to 1.74%, indicating a further enhancement in the company's profitability and efficiency in utilizing shareholder funds.
- By December 31, 2024, the ROE experienced a significant surge to 19.56%, signifying a substantial increase in profitability and efficiency in generating returns for shareholders, possibly due to improved performance or strategic initiatives.
In conclusion, Iridium Communications Inc's return on equity has shown a mix of negative and positive values in the past years, with a notable improvement in profitability and efficiency demonstrated by the significant increase to 19.56% as of December 31, 2024. It is essential for stakeholders to consider the company's performance trajectory and the factors influencing its ROE when evaluating its financial health and future prospects.
Peer comparison
Dec 31, 2024