Iridium Communications Inc (IRDM)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,671,470 | 2,751,190 | 2,717,660 | 2,735,960 | 2,661,780 | 2,705,710 | 2,780,470 | 2,871,650 | 2,954,010 | 3,062,590 | 3,076,780 | 3,077,130 | 3,180,800 | 3,205,970 | 3,201,090 | 3,266,560 | 3,360,950 | 3,365,520 | 3,373,850 | 3,391,070 |
| Total stockholders’ equity | US$ in thousands | 576,637 | 663,757 | 786,699 | 853,685 | 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 |
| Financial leverage ratio | 4.63 | 4.14 | 3.45 | 3.20 | 3.00 | 2.93 | 2.78 | 2.65 | 2.62 | 2.67 | 2.61 | 2.58 | 2.47 | 2.43 | 2.44 | 2.40 | 2.37 | 2.38 | 2.39 | 2.40 |
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, indicating a higher level of financial risk taken on by the company. The ratio stood at 2.40 as of March 31, 2020, and has steadily increased to 4.63 as of December 31, 2024. This implies that the company has been relying more on debt to finance its operations compared to equity.
A financial leverage ratio above 1 generally indicates that the company is using debt to fund its operations. The increasing trend of Iridium Communications Inc's financial leverage ratio suggests that the company may be more vulnerable to economic downturns or changes in interest rates, as higher levels of debt typically lead to higher interest payments and financial obligations.
Investors and creditors may view the rising financial leverage ratio with caution, as it suggests a potentially higher level of default risk for the company. Monitoring this ratio over time is important to assess the company's ability to manage its debt levels and overall financial health.
Peer comparison
Dec 31, 2024