Iridium Communications Inc (IRDM)

Solvency ratios

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
Debt-to-assets ratio 0.00 0.65 0.60 0.58 0.55 0.54 0.54 0.52 0.51 0.51 0.50 0.52 0.51 0.51 0.51 0.50 0.49 0.48 0.48 0.47
Debt-to-capital ratio 0.00 0.73 0.68 0.65 0.62 0.61 0.60 0.58 0.57 0.58 0.57 0.57 0.56 0.55 0.55 0.55 0.54 0.53 0.53 0.53
Debt-to-equity ratio 0.00 2.68 2.08 1.86 1.65 1.59 1.50 1.38 1.32 1.37 1.31 1.35 1.26 1.23 1.25 1.20 1.16 1.13 1.14 1.14
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

Iridium Communications Inc's solvency ratios indicate its ability to meet its long-term financial obligations.

- Debt-to-assets ratio has increased steadily from 0.47 in March 2020 to 0.55 in June 2024, indicating a higher proportion of debt relative to total assets.
- Debt-to-capital ratio follows a similar upward trend, rising from 0.53 in March 2020 to 0.68 in June 2024, suggesting an increasing reliance on debt financing in the company's capital structure.
- Debt-to-equity ratio has shown a consistent rise from 1.14 in March 2020 to 2.08 in June 2024, implying that the company's debt levels exceed equity, implying higher financial risk.
- Financial leverage ratio has also increased over the years, reaching 4.63 in December 2024, indicating the company's increasing use of debt to finance its operations, potentially raising concerns about its solvency.

Overall, the trend in these solvency ratios suggests that Iridium Communications Inc may be taking on more debt relative to its assets, capital, and equity, which could impact its long-term financial stability and ability to repay its obligations.

Coverage ratios

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
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

The interest coverage ratio of Iridium Communications Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest expenses with its operating income.

Initially, from March 31, 2020, to June 30, 2021, the interest coverage remained consistently low, ranging from 0.18 to 0.43. This indicates that the company's operating income was not sufficient to cover its interest payments during this period, posing a potential risk to the company's financial stability.

Subsequently, starting from September 30, 2021, the interest coverage ratio began to improve, reaching a peak of 13.63 by December 31, 2024. This significant increase in the interest coverage ratio suggests that the company's operating income had improved, enabling it to comfortably cover its interest obligations.

However, it is important to note the fluctuations in the interest coverage ratio during this period, which could be attributed to changes in the company's financial performance, interest rates, and debt levels. Investors and creditors would closely monitor this ratio to assess the company's ability to manage its debt and generate sufficient income to meet its interest expenses.