Iridium Communications Inc (IRDM)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 8.90 | 5.06 | 5.85 | 6.30 | 6.36 | |
| Number of days of payables | days | 41.03 | 72.07 | 62.35 | 57.91 | 57.37 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.90
= 41.03
Iridium Communications Inc's number of days of payables has shown a fluctuating trend over the past five years, increasing from 57.37 days as of December 31, 2020, to 72.07 days as of December 31, 2023, before decreasing to 41.03 days as of December 31, 2024. This indicates that the company took longer to pay its creditors in 2023 but managed to reduce its payables turnover significantly in 2024.
A higher number of days of payables suggests that Iridium Communications Inc is taking longer to settle its outstanding obligations to suppliers and vendors, potentially signaling a strain on working capital management. Conversely, a lower number of days of payables may indicate improved efficiency in managing payables and potentially better relationships with suppliers.
It would be beneficial for the company to further analyze the underlying reasons for the fluctuations in the number of days of payables in order to optimize its payable turnover and working capital management strategies. A closer look at the payment terms negotiated with suppliers and the company's cash flow position could provide valuable insights for improving operational efficiency and financial performance.
Peer comparison
Dec 31, 2024