Iridium Communications Inc (IRDM)

Solvency ratios

	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
Debt-to-assets ratio	0.00	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	0.41	0.43	0.44	0.43
Debt-to-capital ratio	0.00	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	0.50	0.51	0.53	0.52
Debt-to-equity ratio	0.00	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	1.01	1.05	1.11	1.09
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

The solvency ratios of Iridium Communications Inc indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been gradually increasing over the past eight quarters, from 0.50 in Q4 2022 to 0.56 in Q4 2023, indicating that the company relies more on debt to finance its assets.

The debt-to-capital ratio and debt-to-equity ratio also show a consistent increase over the same period. The debt-to-capital ratio has increased from 0.57 in Q4 2022 to 0.63 in Q4 2023, while the debt-to-equity ratio has increased from 1.32 in Q4 2022 to 1.67 in Q4 2023. These trends suggest that the company may be taking on more debt relative to its capital and equity, which could increase its financial risk.

Furthermore, the financial leverage ratio has also been increasing steadily, from 2.58 in Q1 2022 to 3.00 in Q4 2023. This ratio indicates the level of debt financing relative to equity, and the rising trend indicates that Iridium Communications Inc is becoming more leveraged over time.

Overall, the gradual increase in these solvency ratios, particularly the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, may raise concerns about Iridium Communications Inc's long-term financial stability and ability to comfortably meet its debt obligations. Investors and stakeholders should closely monitor these solvency ratios to assess the company's financial health and risk profile.

Coverage ratios

	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
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

Interest coverage measures a company's ability to meet its interest obligations on outstanding debt with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

Analyzing Iridium Communications Inc's interest coverage ratio over the past eight quarters, we observe fluctuations across the periods. The interest coverage ratio ranged from 0.55 to 1.16 during this time frame, with the lowest coverage in Q3 2023 and the highest in Q1 2023 and Q4 2022.

The low interest coverage ratios in Q3 and Q2 2023 could raise concerns about Iridium's ability to cover its interest expenses with its operating income during these periods. However, the ratios in Q1 2023 and Q4 2022 show an improvement in the company's ability to meet its interest obligations.

Overall, while there have been fluctuations in Iridium Communications Inc's interest coverage ratio, it is essential to monitor this metric closely to assess the company's financial health and its ability to service its debt obligations effectively.