Iridium Communications Inc (IRDM)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.57 | 0.56 | 0.54 | 0.50 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $888,099K)
= 0.00
The debt-to-capital ratio of Iridium Communications Inc has shown a gradual increasing trend over the past five years, from 0.55 in 2019 to 0.63 in 2023. This indicates that the company has been relying more on debt financing relative to its capital structure. A higher debt-to-capital ratio suggests that a larger portion of the company's capital is funded by debt rather than equity.
It is important to note that while debt can provide a company with financial leverage and tax benefits, high levels of debt can also bring about increased financial risk, especially in times of economic uncertainty or rising interest rates. Therefore, stakeholders should carefully monitor Iridium Communications Inc's debt levels and assess the company's ability to meet its debt obligations in the future.
Peer comparison
Dec 31, 2023