Iridium Communications Inc (IRDM)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 10,120 | 9,977 | 7,977 | 20,581 |
| Interest expense (ttm) | US$ in thousands | 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 | 140,100 | 144,600 | 147,400 | 150,000 |
| Interest coverage | 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 | 0.07 | 0.07 | 0.05 | 0.14 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $63,777K ÷ $14,700K
= 4.34
The interest coverage ratio for Iridium Communications Inc has been showing some fluctuations over the past eight quarters. The ratio indicates the company's ability to meet its interest payments on its outstanding debt obligations.
In Q4 2023, the interest coverage ratio was at 0.84, which suggests that the company's earnings before interest and taxes (EBIT) could cover its interest expenses 0.84 times. This is a decrease from the previous quarter in Q3 2023 when the ratio was 0.55, indicating a potential weakening in the company's ability to meet its interest obligations.
The trend continues with Q2 2023 and Q1 2023, where the interest coverage ratios were 0.56 and 1.16, respectively. The improvement seen in Q1 2023 could be a positive sign for investors and creditors, showing that the company's earnings were more comfortably covering its interest expenses.
Looking back at Q4 2022, the interest coverage ratio was 1.16, which was the same as Q1 2023, indicating consistency in the company's ability to cover its interest payments.
Overall, the fluctuations in the interest coverage ratio for Iridium Communications Inc over the past eight quarters suggest some variability in the company's ability to meet its interest obligations using its earnings before interest and taxes. It would be important to monitor this ratio closely to assess the company's financial health and its ability to service its debt in the future.
Peer comparison
Dec 31, 2023