Iridium Communications Inc (IRDM)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.59 | 3.15 | 3.51 | 2.82 | 2.39 | |
| DOH | days | 229.08 | 116.05 | 103.86 | 129.49 | 152.54 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.59
= 229.08
The Days of Inventory on Hand (DOH) for Iridium Communications Inc has fluctuated over the past five years. As of Dec 31, 2023, the company had an elevated DOH of 147.76 days, indicating that it took approximately 147.76 days for Iridium to sell its inventory. This represents a significant increase from the DOH of 72.18 days in the previous year (Dec 31, 2022).
The upward trend in DOH may suggest potential issues such as overstocking, slow-moving inventory, or decreasing demand for Iridium's products. In contrast, in Dec 31, 2021, and 2020, the company maintained relatively lower DOH figures of 70.49 days and 83.08 days, respectively.
The DOH of 100.43 days on Dec 31, 2019, was higher than the two preceding years but lower than the most recent year, indicating fluctuations in inventory management practices over the years.
Overall, the increasing trend in DOH from 2019 to 2023 highlights the importance for Iridium Communications Inc to closely monitor and evaluate its inventory management strategies to optimize its operations and profitability.
Peer comparison
Dec 31, 2023