Iridium Communications Inc (IRDM)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.41 | 8.38 | 8.16 | 8.43 | 8.62 | 7.60 | 8.35 | 7.50 | 8.76 | 8.00 | 8.96 | 8.05 | 9.69 | 7.99 | 8.83 | 9.47 | 9.54 | 9.70 | 9.42 | 8.87 | |
| DSO | days | 43.41 | 43.56 | 44.73 | 43.30 | 42.34 | 48.02 | 43.74 | 48.67 | 41.65 | 45.61 | 40.73 | 45.35 | 37.66 | 45.69 | 41.34 | 38.54 | 38.26 | 37.62 | 38.74 | 41.15 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.41
= 43.41
Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect revenue after a sale has been made. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally favorable as it improves cash flow.
Analyzing the DSO trend of Iridium Communications Inc over the provided periods, we observe fluctuations in the collection efficiency. The DSO decreased from 41.15 days as of March 31, 2020, to 37.62 days by September 30, 2020, indicating an improvement in the company's ability to collect revenue promptly. However, there was a slight increase in DSO to 45.69 days by September 30, 2021, suggesting a delay in collecting payments from customers.
Iridium Communications managed to reduce its DSO to 37.66 days by December 31, 2021, showing a positive trend, but the DSO increased again to 48.67 days by March 31, 2023, reaching the highest level in the provided data set. This increase may potentially indicate challenges in collecting receivables efficiently.
In the later periods, the company made efforts to bring down the DSO, with fluctuations observed between 40.73 days and 43.56 days. Overall, Iridium Communications Inc should continue to monitor and manage its DSO effectively to ensure timely collection of accounts receivable and maintain healthy cash flow levels.
Peer comparison
Dec 31, 2024