Iridium Communications Inc (IRDM)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.61 | 0.60 | 0.58 | 0.57 | 0.58 | 0.57 | 0.57 | 0.56 | 0.55 | 0.55 | 0.55 | 0.54 | 0.53 | 0.53 | 0.53 | 0.50 | 0.51 | 0.53 | 0.52 |
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 eight quarters, starting at 0.57 in Q1 2022 and reaching 0.63 in Q4 2023. This indicates that the company's reliance on debt to finance its operations and projects has been growing steadily.
The ratio moving from 0.57 to 0.63 means that for every dollar of capital employed in the business, 63 cents were financed by debt in Q4 2023. This suggests that a significant portion of the company's capital structure is made up of debt, which can potentially increase financial risk due to interest payments and repayment obligations.
The consistent upward trend in the debt-to-capital ratio implies that Iridium Communications Inc may be strategically using debt to fuel its expansion or operational needs. However, investors and stakeholders should closely monitor this trend to ensure that the company can effectively manage its debt levels and meet its financial obligations in the long term.
Peer comparison
Dec 31, 2023