Iridium Communications Inc (IRDM)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	63,777	54,105	43,824	80,594	76,679	68,580	65,735	56,531	46,314	40,740	38,444	32,677	35,483	30,384	25,662	23,575	10,120	9,977	7,977	20,581
Long-term debt	US$ in thousands	—	1,470,670	1,499,200	1,501,400	1,494,300	1,568,500	1,552,400	1,605,900	1,622,100	1,627,300	1,638,000	1,638,600	1,647,900	1,600,390	1,603,620	1,606,880	1,468,100	1,631,500	1,742,810	1,737,060
Total stockholders’ equity	US$ in thousands	888,099	925,002	1,000,190	1,085,590	1,128,560	1,145,100	1,181,100	1,191,780	1,287,950	1,321,780	1,314,180	1,363,780	1,419,440	1,415,460	1,409,160	1,413,790	1,459,280	1,559,260	1,572,950	1,586,700
Return on total capital		7.18%	2.26%	1.75%	3.12%	2.92%	2.53%	2.40%	2.02%	1.59%	1.38%	1.30%	1.09%	1.16%	1.01%	0.85%	0.78%	0.35%	0.31%	0.24%	0.62%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $63,777K ÷ ($—K + $888,099K)
= 7.18%

Iridium Communications Inc's return on total capital has shown variability over the past eight quarters. The return on total capital ranged from a low of 1.64% in Q2 2023 to a high of 3.19% in Q4 2023. Overall, the company's return on total capital has been relatively stable, with the most recent quarter (Q4 2023) showing a slight improvement compared to the previous quarters. It is important for Iridium Communications Inc to continue monitoring and managing its capital effectively to ensure sustainable and consistent returns for its investors.

Peer comparison

Dec 31, 2023

Company name

Symbol

Return on total capital

Iridium Communications Inc

IRDM

7.18%

ESCO Technologies Inc

ESE

9.90%

Lumentum Holdings Inc

LITE

-11.07%