Iridium Communications Inc (IRDM)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,864 | 76,679 | 46,314 | 35,483 | 10,120 |
| Long-term debt | US$ in thousands | — | 1,494,300 | 1,622,100 | 1,647,900 | 1,468,100 |
| Total stockholders’ equity | US$ in thousands | 888,099 | 1,128,560 | 1,287,950 | 1,419,440 | 1,459,280 |
| Return on total capital | 0.44% | 2.92% | 1.59% | 1.16% | 0.35% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,864K ÷ ($—K + $888,099K)
= 0.44%
Iridium Communications Inc's return on total capital has shown a positive trend over the past five years, indicating an improvement in the company's ability to generate returns on the capital invested in its operations. The return on total capital increased from 0.31% in 2019 to 3.19% in 2023. This considerable improvement suggests that the company's operational efficiency and overall financial performance have strengthened over the years. The consistent growth in return on total capital reflects positively on Iridium Communications Inc's management of its capital structure and use of resources to create value for its investors.
Peer comparison
Dec 31, 2023