Iridium Communications Inc (IRDM)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 145,206 | 125,104 | 102,074 | 91,552 | 95,565 |
| Inventory | US$ in thousands | 91,135 | 39,776 | 29,044 | 32,480 | 39,938 |
| Inventory turnover | 1.59 | 3.15 | 3.51 | 2.82 | 2.39 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $145,206K ÷ $91,135K
= 1.59
Iridium Communications Inc's inventory turnover has fluctuated over the past five years. In 2023, the inventory turnover ratio was 2.47, indicating that the company's inventory turned over approximately 2.47 times during the year. This represents a decrease from the previous year's ratio of 5.06.
The decline in inventory turnover may suggest that Iridium held onto inventory for a longer period in 2023 compared to 2022. This could be a result of various factors such as changes in demand, production issues, or inventory management practices.
Despite the decrease in 2023, Iridium's inventory turnover ratios for the past five years generally demonstrate efficient management of inventory. A higher turnover ratio indicates that the company is selling its inventory quickly, which can help reduce carrying costs and minimize the risk of obsolete inventory.
Overall, while the decline in inventory turnover in 2023 should be further investigated, it is important to consider other factors affecting inventory management to gain a comprehensive understanding of Iridium Communications Inc's performance in this area.
Peer comparison
Dec 31, 2023