Iridium Communications Inc (IRDM)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.41 | 8.62 | 8.76 | 9.69 | 9.54 | |
| DSO | days | 43.41 | 42.34 | 41.65 | 37.66 | 38.26 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.41
= 43.41
The Days of Sales Outstanding (DSO) for Iridium Communications Inc has shown a slight fluctuation over the past few years. It was 38.26 days as of December 31, 2020, and decreased marginally to 37.66 days by December 31, 2021. However, there was a subsequent increase to 41.65 days as of December 31, 2022, followed by a further rise to 42.34 days by December 31, 2023. The DSO continued to trend upward, reaching 43.41 days by December 31, 2024.
This indicates that Iridium's collection period for accounts receivable has been increasing gradually over the years. A higher DSO may suggest potential issues with collecting payments from customers promptly, which could impact the company's cash flow and liquidity. It is important for the company to monitor and possibly improve its credit and collection policies to manage its DSO effectively.
Peer comparison
Dec 31, 2024