Iridium Communications Inc (IRDM)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.62 | 8.76 | 9.69 | 9.54 | 8.16 | |
| DSO | days | 42.34 | 41.65 | 37.66 | 38.26 | 44.74 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.62
= 42.34
The days of sales outstanding (DSO) for Iridium Communications Inc have shown some variability over the past five years. In 2023, the DSO is 42.34 days, slightly higher than the previous year's 41.65 days. The trend has been generally increasing since 2021 when the DSO was at its lowest level of 37.66 days. Compared to 2019, there has been a decrease in DSO, indicating that the company has been more efficient in collecting accounts receivable over the past year. However, the current DSO level suggests that Iridium Communications Inc takes around 42.34 days, on average, to collect its outstanding sales, which should be monitored to ensure efficient cash flow management.
Peer comparison
Dec 31, 2023