Iridium Communications Inc (IRDM)
Debt-to-equity 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-equity ratio | 0.00 | 1.32 | 1.26 | 1.16 | 1.01 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $888,099K
= 0.00
The debt-to-equity ratio of Iridium Communications Inc has been fluctuating over the past five years. The ratio increased from 1.22 in 2019 to 1.24 in 2021, indicating a slight rise in the company's reliance on debt to finance its operations. Subsequently, there was a further increase to 1.32 in 2022 and a significant jump to 1.67 in 2023, suggesting a notable increase in the proportion of debt relative to equity in the company's capital structure.
Overall, the trend in the debt-to-equity ratio for Iridium Communications Inc shows a gradual escalation over the years, implying an increasing level of financial leverage. This could potentially indicate higher financial risk for the company as a higher debt-to-equity ratio typically signifies higher financial leverage and could result in greater volatility in earnings and cash flows. Investors and stakeholders should closely monitor the company's ability to manage its debt levels and ensure it does not become excessively burdened with debt obligations.
Peer comparison
Dec 31, 2023