Iridium Communications Inc (IRDM)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.59 | 2.07 | 2.62 | 3.69 | 3.15 | 2.97 | 3.97 | 3.74 | 3.51 | 4.34 | 3.40 | 3.11 | 2.82 | 2.71 | 2.48 | 2.46 | 2.39 | 2.42 | 2.63 | 2.87 | |
| DOH | days | 229.08 | 175.92 | 139.06 | 98.97 | 116.05 | 122.93 | 92.04 | 97.69 | 103.86 | 84.09 | 107.29 | 117.32 | 129.49 | 134.52 | 147.02 | 148.66 | 152.54 | 150.54 | 138.99 | 126.96 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.59
= 229.08
The days of inventory on hand (DOH) for Iridium Communications Inc have shown fluctuations over the past eight quarters. In Q4 2023, the company had an inventory on hand for approximately 147.76 days, which was an increase from the previous quarter. This indicates that Iridium may be carrying excess inventory relative to its sales level.
The trend over the past year shows a peak in Q2 2023 with 90.44 days, followed by a decrease in Q3 2023 and a sharp increase in Q4 2023. Comparing year-over-year data, the DOH has increased from 64.93 days in Q1 2022 to 147.76 days in Q4 2023, indicating a significant increase in the holding period of inventory.
This rising trend in DOH may suggest potential issues such as overstocking, slow inventory turnover, or weakening demand for Iridium's products. It is essential for the company to effectively manage its inventory levels to optimize working capital and avoid potential obsolescence or carrying costs. Further analysis of sales trends, production efficiency, and inventory management practices is recommended to address any underlying issues impacting the DOH metric.
Peer comparison
Dec 31, 2023