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Iridium CommunicationsIRDM +1.49%77 Cash Ratio is 1.03 as of Mar. 2026, which is 20% below its 10-year median of 1.29. GuruFocus rates IRDM with a GF Score™ of 77/100 and a GF Value™ of $36.53 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 358 Telecommunication Services companies, Iridium Communications ranks better than 81.56% on this metric.
Iridium Communications has a Cash Ratio of 1.03. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Iridium Communications's Cash Ratio or its related term are showing as below:
IRDM'
s Cash Ratio Range Over the Past 10 Years
Min: 0.39 Med: 1.29 Max: 5.18
Current: 1.03
During the past 13 years, Iridium Communications's highest Cash Ratio was 5.18. The lowest was 0.39. And the median was 1.29.
IRDM's Cash Ratio is ranked better than 81.56% of 358
companies
in the Telecommunication Services industry
Industry Median: 0.34
vs IRDM: 1.03
Iridium Communications (NAS:IRDM) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Telecom Services subindustry, Iridium Communications's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Iridium Communications Cash Ratio vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Iridium Communications's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Iridium Communications's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Iridium Communications (IRDM) has a Cash Ratio of 1.03 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Iridium Communications and its competitors. This is 20% below median its historical median of 1.29. Over the past decade, Iridium Communications' Cash Ratio has ranged from 0.39 to 5.18. According to the industry distribution chart, Iridium Communications ranks #66 out of 358 companies in the Telecommunication Services industry, placing it in the top 18.4%.
Is Iridium Communications' Cash Ratio too high?
Iridium Communications' current Cash Ratio of 1.03 is 20% below median its 10-year median of 1.29. Over the past 10 years, this metric has ranged from a low of 0.39 to a high of 5.18. The Telecommunication Services industry median Cash Ratio is 0.34. Iridium Communications' value of 1.03 is 202.9% above this industry median. Based on the distribution chart, Iridium Communications ranks #66 out of 358 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Iridium Communications has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Iridium Communications' Cash Ratio compare to LBRDA and TDS?
According to the Telecommunication Services industry distribution chart, Iridium Communications ranks #66 out of 358 companies for Cash Ratio. This places Iridium Communications in the top 18% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.34. Iridium Communications' value of 1.03 is 202.9% above this benchmark. Historically, Iridium Communications' own Cash Ratio has ranged from 0.39 to 5.18 over the past decade. While the company's 10-year median is 1.29 vs. the industry median of 0.34, Iridium Communications has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Telecommunication Services company?
The median Cash Ratio among Telecommunication Services companies is 0.34, based on 358 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Iridium Communications's current Cash Ratio of 1.03 is 202.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Iridium Communications and its competitors. For the Telecommunication Services industry, the median Cash Ratio is 0.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Iridium Communications's current Cash Ratio is 1.03, which is 20% below median its own 10-year median of 1.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Iridium Communications stock overvalued right now?
Based on GuruFocus' analysis, Iridium Communications (IRDM) is currently considered Modestly Overvalued. The stock's GF Value™ is $36.53, compared to a current price of $47.31 — trading 29.5% above its estimated fair value. The current Cash Ratio is 1.03, which is 20% below median its 10-year median of 1.29 and 202.9% above the Telecommunication Services industry median of 0.34. Iridium Communications' overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Iridium Communications (IRDM), the current Cash Ratio is 1.03 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Iridium Communications (IRDM) Overvalued in 2026?
Based on GuruFocus' analysis, Iridium Communications stock appears to be overvalued.
The current stock price of $47.31 is trading 29.5% above its estimated GF Value™ of $36.53.
GuruFocus considers Iridium Communications to be Modestly Overvalued.
Key valuation signals for IRDM:
Cash Ratio: 1.03 (20% below median its 10-year median of 1.29)
GF Value™: $36.53 vs. price of $47.31 (29.5% above fair value)
Industry Position: 202.9% above the Telecommunication Services median (#66 of 358)
No single metric tells the full story. See the IRDM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Iridium Communications Inc is the commercial provider of communications services offering true globalised coverage, connecting people, organizations, and assets to and from anywhere, in real time. The company is a provider of mobile voice and data communications services through a constellation of low-earth-orbiting satellites. Iridium's solutions are ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, heavy equipment, transportation, and utilities. Iridium also provides service to subscribers from the U.S. Department of Defense, as well as other civil and government agencies world-wide. The Company operates in one business segment, providing satellite communications services and products.
77GF Score
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