Iridium Communications Inc (IRDM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 3,623,560 | 3,827,010 | 3,917,060 | 4,026,310 |
| 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 |
| Financial leverage ratio | 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 | 2.48 | 2.45 | 2.49 | 2.54 |
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 a consistent upward trend from Q1 2022 to Q4 2023, indicating an increase in the company's financial leverage over this period. This implies that the company has been relying more on debt financing compared to equity financing. The ratio has increased from 2.58 in Q1 2022 to 3.00 in Q4 2023, suggesting a higher level of debt relative to equity in the company's capital structure. This trend should be monitored closely as higher leverage can amplify the company's financial risks, particularly in times of economic downturns or high-interest rates. It is important for investors and stakeholders to assess the company's ability to manage its debt levels and generate sufficient returns to cover its financial obligations.
Peer comparison
Dec 31, 2023