Iridium Communications Inc (IRDM)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 200,384 | 176,714 | 150,017 | 90,400 | 63,777 | 54,105 | 43,824 | 80,594 | 76,679 | 68,580 | 65,735 | 56,531 | 46,314 | 40,740 | 38,444 | 32,677 | 35,483 | 30,384 | 25,662 | 23,575 |
| Interest expense (ttm) | US$ in thousands | 14,702 | 77,103 | 20,699 | 16,549 | 14,700 | 35,714 | 84,165 | 78,125 | 72,092 | 62,876 | 61,494 | 64,363 | 72,860 | 84,662 | 89,800 | 94,500 | 98,600 | 107,900 | 120,000 | 131,600 |
| Interest coverage | 13.63 | 2.29 | 7.25 | 5.46 | 4.34 | 1.51 | 0.52 | 1.03 | 1.06 | 1.09 | 1.07 | 0.88 | 0.64 | 0.48 | 0.43 | 0.35 | 0.36 | 0.28 | 0.21 | 0.18 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $200,384K ÷ $14,702K
= 13.63
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. For Iridium Communications Inc, the interest coverage ratio has shown significant fluctuations over the analyzed periods.
- At the end of December 31, 2023, Iridium's interest coverage ratio was 4.34, indicating that the company generated operating income 4.34 times the amount needed to cover its interest expenses.
- This ratio improved further at the end of March 31, 2024, and June 30, 2024, reaching 5.46 and 7.25, respectively, which suggests a stronger ability to meet its interest obligations.
- However, there was a sharp decline in the interest coverage ratio at the end of September 30, 2024, to 2.29, which might raise concerns about the company's ability to cover its interest payments adequately.
- Remarkably, by the end of December 31, 2024, the interest coverage ratio surged to 13.63, signifying a substantial improvement and a robust ability to handle interest costs.
Overall, the trend in Iridium Communications Inc's interest coverage ratio shows variability, with periods of both improvement and deterioration. Investors and analysts should closely monitor this ratio to assess the company's financial health and debt servicing capabilities.
Peer comparison
Dec 31, 2024