Iridium Communications Inc (IRDM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,671,470 | 2,661,780 | 2,954,010 | 3,180,800 | 3,360,950 |
| Total stockholders’ equity | US$ in thousands | 576,637 | 888,099 | 1,128,560 | 1,287,950 | 1,419,440 |
| Financial leverage ratio | 4.63 | 3.00 | 2.62 | 2.47 | 2.37 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,671,470K ÷ $576,637K
= 4.63
The financial leverage ratio of Iridium Communications Inc has been gradually increasing over the years from 2.37 in 2020 to 4.63 in 2024. This indicates that the company has been relying more on debt to finance its operations and investments relative to its equity. A higher financial leverage ratio suggests higher financial risk as the company may have a greater debt burden that needs to be serviced. It is important for stakeholders to closely monitor this ratio to ensure the company's ability to meet its debt obligations and maintain financial stability amid changing economic conditions.
Peer comparison
Dec 31, 2024