Iridium Communications Inc (IRDM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,661,780 | 2,954,010 | 3,180,800 | 3,360,950 | 3,623,560 |
| Total stockholders’ equity | US$ in thousands | 888,099 | 1,128,560 | 1,287,950 | 1,419,440 | 1,459,280 |
| Financial leverage ratio | 3.00 | 2.62 | 2.47 | 2.37 | 2.48 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,661,780K ÷ $888,099K
= 3.00
The financial leverage ratio of Iridium Communications Inc has shown an increasing trend over the past five years, from 2.48 in 2019 to 3.00 in 2023. This indicates that the company is relying more on debt financing to support its operations and assets. A higher financial leverage ratio suggests that the company has a higher level of debt relative to its equity, which can increase financial risk. It is important for stakeholders to closely monitor this trend to ensure that the company's debt levels are sustainable and manageable in the long term.
Peer comparison
Dec 31, 2023
Company name
Symbol
Financial leverage ratio
Iridium Communications Inc
IRDM
3.00
ESCO Technologies Inc
ESE
1.49
Lumentum Holdings Inc
LITE
4.11