Iridium Communications Inc (IRDM)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 175,282 | 168,102 | 155,117 | 143,333 | 145,206 | 147,590 | 146,362 | 137,685 | 125,104 | 116,455 | 110,212 | 105,520 | 102,074 | 101,520 | 96,254 | 93,384 | 91,552 | 90,377 | 92,680 | 92,549 |
| Inventory | US$ in thousands | 81,283 | 82,228 | 85,815 | 92,538 | 91,135 | 71,136 | 55,762 | 37,335 | 39,776 | 39,222 | 27,793 | 28,241 | 29,044 | 23,388 | 28,294 | 30,015 | 32,480 | 33,309 | 37,331 | 37,695 |
| Inventory turnover | 2.16 | 2.04 | 1.81 | 1.55 | 1.59 | 2.07 | 2.62 | 3.69 | 3.15 | 2.97 | 3.97 | 3.74 | 3.51 | 4.34 | 3.40 | 3.11 | 2.82 | 2.71 | 2.48 | 2.46 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $175,282K ÷ $81,283K
= 2.16
The inventory turnover for Iridium Communications Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio indicates how efficiently the company is managing its inventory by comparing the cost of goods sold to the average inventory for a given period.
Initially, the inventory turnover ratio increased steadily from 2.46 on March 31, 2020, to a peak of 4.34 on September 30, 2021. This improvement suggests that the company was selling its inventory more quickly, which can result in better liquidity and profitability.
However, starting from December 31, 2021, the inventory turnover ratio began to fluctuate, indicating potential inventory management challenges. The ratio decreased to 1.59 on December 31, 2023, and then slightly recovered to 2.16 by December 31, 2024. These fluctuations may indicate inefficiencies in inventory management or changes in demand for the company's products.
Overall, while the inventory turnover ratio experienced both positive and negative movements during the period under review, it is important for Iridium Communications Inc to maintain a balance in managing its inventory efficiently to support its operational performance and financial health.
Peer comparison
Dec 31, 2024
Dec 31, 2024