Iridium Communications Inc (IRDM)
Debt-to-equity 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-equity ratio | 0.00 | 1.59 | 1.50 | 1.38 | 1.32 | 1.37 | 1.31 | 1.35 | 1.26 | 1.23 | 1.25 | 1.20 | 1.16 | 1.13 | 1.14 | 1.14 | 1.01 | 1.05 | 1.11 | 1.09 |
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 exhibited a fluctuating trend over the past eight quarters. The ratio increased steadily from Q1 2022 to Q4 2022, reaching 1.32. However, in the subsequent quarters of 2023, the ratio reversed this trend, showing an upward trajectory and breaching the 1.5 mark.
From Q1 2023 to Q4 2023, the debt-to-equity ratio escalated from 1.37 to 1.67, indicating a significant increase in the company's leverage. This suggests that Iridium Communications Inc has been relying more on debt financing compared to equity financing to fund its operations and investments. A higher debt-to-equity ratio may signal increased financial risk and potential difficulties in meeting debt obligations.
Further analysis would be necessary to understand the reasons behind this shift in the debt-to-equity ratio and assess the implications of higher leverage on the company's financial health and stability.
Peer comparison
Dec 31, 2023