Iridium Communications Inc (IRDM)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 175,382 | 145,206 | 125,104 | 102,074 | 91,552 |
| Inventory | US$ in thousands | 81,283 | 91,135 | 39,776 | 29,044 | 32,480 |
| Inventory turnover | 2.16 | 1.59 | 3.15 | 3.51 | 2.82 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $175,382K ÷ $81,283K
= 2.16
Iridium Communications Inc's inventory turnover ratio has shown fluctuations over the past five years. In December 2020, the inventory turnover was 2.82, indicating that the company converted its inventory into sales approximately 2.82 times during that year.
The ratio increased to 3.51 by December 2021, signaling a more efficient management of inventory as the company was able to sell its goods at a faster rate. However, there was a slight decrease in inventory turnover to 3.15 by December 2022.
In December 2023, the inventory turnover ratio dropped significantly to 1.59, suggesting a slowdown in the company's inventory management efficiency and sales process. This decline could be due to various factors such as overstocking, changing consumer demand, or operational challenges.
By December 2024, the inventory turnover ratio improved to 2.16, but it remained below the levels seen in the earlier years. It indicates that there was still room for enhancement in managing inventory levels effectively to support sales growth and optimize working capital.
Overall, the trend in Iridium Communications Inc's inventory turnover ratios reflects varying degrees of efficiency in inventory management over the years, which can impact the company's cash flow, profitability, and overall financial performance.
Peer comparison
Dec 31, 2024