Iridium Communications Inc (IRDM)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 8.16 | 7.90 | 5.96 | 7.85 | |
| DSO | days | 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 | 44.74 | 46.18 | 61.29 | 46.49 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.62
= 42.34
To analyze Iridium Communications Inc's Days of Sales Outstanding (DSO) based on the provided data, we calculate the average DSO over the past eight quarters. The average DSO is calculated by summing the DSO values for each quarter and dividing by the total number of quarters.
Average DSO = (42.34 + 46.54 + 43.33 + 48.45 + 41.65 + 46.41 + 41.41 + 45.93) / 8
Average DSO = 44.77 days
The average DSO for Iridium Communications Inc over the past eight quarters is 44.77 days. This indicates that, on average, the company takes approximately 44.77 days to collect its accounts receivable from customers.
A higher DSO value suggests that the company is taking longer to collect its outstanding receivables, which may indicate inefficiencies in the company's credit and collection policies. Conversely, a lower DSO value indicates that the company is collecting its receivables more quickly, which is generally a positive sign of effective credit management.
In the case of Iridium Communications Inc, the average DSO of 44.77 days falls within a moderate range. It is important for the company to monitor its DSO over time to ensure efficient management of its accounts receivable and maintain healthy cash flows. Comparing the current DSO to industry benchmarks and historical trends can provide further insights into the company's financial performance and credit management practices.
Peer comparison
Dec 31, 2023