Iridium Communications Inc (IRDM)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 200,384 | 176,714 | 150,017 | 90,400 | 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 |
| Long-term debt | US$ in thousands | — | 1,776,510 | 1,634,710 | 1,587,510 | 1,467,490 | 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 |
| Total stockholders’ equity | US$ in thousands | 576,637 | 663,757 | 786,699 | 853,685 | 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 |
| Return on total capital | 34.75% | 7.24% | 6.20% | 3.70% | 2.71% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $200,384K ÷ ($—K + $576,637K)
= 34.75%
Iridium Communications Inc's return on total capital has shown a positive trend over the analyzed period. Starting at 0.78% in March 2020, the return gradually increased to 34.75% by December 2024. The return fluctuated over the period, indicating changes in the company's efficiency in generating profits from its total capital. The significant increase in return by the end of December 2024 suggests an improved utilization of the company's capital to generate higher profits. Overall, the upward trend in return on total capital indicates positive performance and effective capital management by Iridium Communications Inc.
Peer comparison
Dec 31, 2024