Iridium Communications Inc (IRDM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 888,099 | 1,128,560 | 1,287,950 | 1,419,440 | 1,459,280 |
| ROE | 1.74% | 0.77% | -0.72% | -3.95% | -11.10% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $15,415K ÷ $888,099K
= 1.74%
Iridium Communications Inc's return on equity (ROE) has shown a mixed performance over the last five years. The ROE improved from negative figures in 2019 and 2020 to positive levels in 2021, 2022, and 2023. Despite the improvement, the ROE remains relatively low, indicating the company's efficiency in generating profits from shareholders' equity is not strong.
In 2023, the ROE stood at 1.74%, an increase from the previous year. This suggests that for every dollar of shareholders' equity, the company generated a return of 1.74 cents, showing a slight improvement in profitability from the previous year.
Overall, Iridium Communications Inc's ROE has been on a gradual upward trend in recent years, but the consistently low levels compared to industry peers indicate that the company may not be utilizing shareholder equity effectively to generate returns. Further analysis of the company's operating performance and efficiency is recommended to understand the factors influencing its ROE.
Peer comparison
Dec 31, 2023