Iridium Communications Inc (IRDM)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.16 | 1.59 | 3.15 | 3.51 | 2.82 | |
| DOH | days | 169.16 | 229.08 | 116.05 | 103.86 | 129.49 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.16
= 169.16
The days of inventory on hand (DOH) for Iridium Communications Inc have fluctuated over the years based on the provided data.
As of December 31, 2020, the company had 129.49 days of inventory on hand, which decreased to 103.86 days by December 31, 2021. This decrease in DOH indicates that the company managed its inventory more efficiently during that period.
However, by December 31, 2022, the DOH increased to 116.05 days, suggesting a potential buildup of inventory compared to the previous year. The trend continued with a significant increase in DOH to 229.08 days by December 31, 2023, indicating potential inventory management challenges or excess inventory levels.
By December 31, 2024, the DOH decreased to 169.16 days, showing a slight improvement in managing inventory levels compared to the previous year but still at a relatively high level.
Overall, a decreasing trend in DOH is generally favorable as it indicates efficient inventory management and could potentially improve cash flow and profitability. Conversely, a rising trend in DOH may raise concerns about excess inventory, storage costs, and potentially obsolete or slow-moving inventory. Iridium Communications Inc should closely monitor its inventory levels and aim to strike a balance between meeting demand and minimizing carrying costs.
Peer comparison
Dec 31, 2024