Iridium Communications Inc (IRDM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 139,735 | 3,864 | 76,679 | 46,314 | 35,483 |
| Long-term debt | US$ in thousands | — | 1,467,490 | 1,494,300 | 1,622,100 | 1,647,900 |
| Total stockholders’ equity | US$ in thousands | 576,637 | 888,099 | 1,128,560 | 1,287,950 | 1,419,440 |
| Return on total capital | 24.23% | 0.16% | 2.92% | 1.59% | 1.16% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $139,735K ÷ ($—K + $576,637K)
= 24.23%
The return on total capital for Iridium Communications Inc has shown variability over the years based on the provided data.
In 2020, the return on total capital was 1.16%, indicating that the company generated a return of 1.16% on its total capital employed.
In 2021, there was a slight improvement with a return of 1.59%, suggesting a modest increase in the company's profitability and efficiency in utilizing its capital.
The return on total capital significantly improved in 2022, reaching 2.92%, which indicates a more efficient use of the company's total capital to generate returns.
However, in 2023, the return on total capital dropped sharply to 0.16%, signaling a potential decline in the company's profitability or capital efficiency during that period.
The most notable change occurred in 2024, where the return on total capital surged to 24.23%, which could indicate a significant increase in profitability and efficiency in utilizing the total capital, potentially due to successful strategic initiatives or financial performance improvements.
Overall, the return on total capital for Iridium Communications Inc has shown fluctuations over the years, with significant improvements in some years and declines in others. It would be essential for stakeholders to further investigate the reasons behind these fluctuations to assess the company's financial performance and identify areas for improvement.
Peer comparison
Dec 31, 2024